Multi-currency: reports [in-depth guide]
Guide contents: Balance sheet & bank reevaluations | Realized gains/losses | Unrealized gains/losses | Review
The financial reports will be displayed using home currencies. The other reports will be displayed in transaction currency or home currency, depending on each report.
NOTE: The exception is the cash projection - drill-down report. This report will display amounts in the currency of that account. The amounts will NOT be revalued to the home currency.
On reports such as the balance sheet where balances for the bank accounts are displayed, it may be required to revalue the balance using a current exchange rate (bank reevaluations). Balances on AR, AP, and credit card accounts will also be revalued.
Balance sheet & bank reevaluations
On the balance sheet, the exchange rate will default based on the date the balance sheet is run. Or, you can edit the exchange rates for your foreign currencies before running the balance sheet.
These exchange rates default from your currency exchange rate table.
Assume that you receive 200 EUR at 1.1 (1 EUR = 1.1 USD) on 12/1/2017 and 800 EUR at 1.3 exchange rate on 1/15/2018.
Assume now that 1 EUR = 1.2 USD on 12/31/17 and 1 EUR= 1.4 USD on 1/31/18 and you run the balance sheet as of 1/31/18
The currency gain/loss for the retained earning account will be 200 * 1.2 - 200 * 1.1 = 20 USD
The balance revalued at 1.4 = 1000 * 1.4 = 1400 USD
The total earning is 1000 * 1.4 - (200 * 1.1 + 800 * 1.3) = 140 USD
The current earning for the period 1/1/18 to 1/31/18 is = total earning - retained earning = 140 - 20 = 120 USD
Bank accounts will be revalued by considering the whole balance and multiplying by the exchange rate. Accounts such as the advance bill account, the unapplied cash and payment accounts are revalued by multiplying the balance for each currency and multiplying by the corresponding exchange rates.
The 2 following reports allow you to display multi-currency gains or losses.
Multi-currency realized gains/losses
This report shows the gains and losses realized after applying receipts to client invoices, payments to vendor invoices, etc...
Multi-currency unrealized gains/losses
This report shows the unrealized gains and losses calculated on client and vendor invoices with open amounts.