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Dual-Base System

Users residing in a country that is going through the transitional process of joining the Euro system, or trading with Customers or Suppliers in such a country, should use the Dual-Base system. To set up such a system, follow the steps numbered below:
  1. Enter the Currencies used in your business using the Currency register in the System module.

  2. Using the Base Currency setting in the System module, define the two Currencies which are to be treated as Base Currencies.

    Companies in the Euro zone retaining their old Currency for comparison purposes should have the Euro as Base Currency 1 and the Default Base Currency and the old national Currency as Base Currency 2.

    Other voluntary users of the Dual-Base system should have their home Currency as Base Currency 1 and the Default Base Currency and their second Currency (e.g. Euro or US Dollar) as Base Currency 2.

    Companies in transitional countries should have their national Currency as Base Currency 1 and the Default Base Currency and the Euro as Base Currency 2.

  3. Define conversion rates between the two Base Currencies using the Base Currency Rates setting in the System module.

  4. Define conversion rates between your Base Currencies and the foreign Currencies using the Exchange Rate register in the System module.

    Voluntary users of the Dual-Base system will usually need Exchange Rates between foreign Currencies and Base Currency 1. However, they can also relate foreign Currencies to Base Currency 2 if necessary. This includes users in the Euro zone retaining their old Currency for comparison purposes.

    Users in transitional countries should only enter Exchange Rates between foreign Currencies and the Euro (Base Currency 2). Exchange Rates between the home Currency and foreign Currencies, and between the home Currency and the Euro should not be entered.

  5. Using card 2 of the Account Usage S/L setting in the Sales Ledger, define Accounts to be used for gains and losses resulting from Currency conversions of Sales Ledger transactions. The Round Off and Bank Fee Accounts on this screen should also be considered.

  6. Repeat step 5 for Purchase Ledger transactions using card 2 of the Account Usage P/L setting.
Please click the links for detailed descriptions of each step.