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Changes in Base Currency 2

If you are using the Dual-Base system, you may wish to account for gains or losses resulting from changes in Base Rates. For example, if a Transaction is entered using the correct Base Rate for the Transaction Date and the Base Rate then changes significantly, it may be necessary to apply the new Base Rate and post a gain or loss in Base Currency 2.

To carry out this task, follow these steps:

Run the Base Currency Rate Change report in the Nominal Ledger to view the effect on past Transactions of recent Base Rate changes.
Run the 'Revaluation of Base Currency 2' Maintenance function in the Nominal Ledger to create a Transaction posting the gains or losses resulting from the application of the new Base Rate. Note that this Transaction will only have values in Base Currency 2 as its purpose is to ensure old Transactions balance using the latest Base Rates.

Please click the links for detailed descriptions of each step.

Base Currency Rate Change

This report in the Nominal Ledger is part of the Dual-Base system only. It shows balances for all Accounts in Base Currency 1, in Base Currency 2 using the Base Rate at the time of the Transactions and in Base Currency 2 using the Exchange and Base Rates for a specified date. The report can thus be used to analyse any losses or gains in Base Currency 2 that could be achieved by applying specified Exchange and Base Rates to old Transactions and should therefore be produced prior to running the 'Revaluation of Base Currency 2' function.

Date: Paste Special Current Date; Enter the date of the report. The balances shown in the report will be calculated using Transactions whose Transaction Date is on or before this date. If no date is entered, the current date will be used.
Date of Exchange Rate: Paste Special Current Date; The Exchange and Base Rates that were in use on the date specified here will be used in recalculating the balances in Base Currency 2. If no date is entered, the current date will be used.
Accounts: Paste Special Account register, Nominal Ledger/System module; If you want to report on a specific Account, enter its Account Code here.
List Rates: Use this option if you want the Base Rates for all Currencies applicable on the report date to be included in a separate list at the top of the report.
Include Accounts with Zero Balance: Check this box if you want the report to include Accounts with zero balances (i.e. that have not been used).
Include Accounts with Zero Difference: Check this box if you want the report to include Accounts where the application of the specified Exchange and Base Rates makes no difference to the Base Currency 2 balance.

Revaluation of Base Currency 2

This function, available through the 'Maintenance' item on the File menu in the Nominal Ledger, will look to all Transactions compare the Exchange and Base Rates used at the time of the Transaction (or those used when the 'Revaluation of Base Currency 2' function was last run) with the Exchange and Base Rates for a specified date. If the two sets of Exchange and Base Rates result in different values in Base Currency 2, a new Nominal Ledger Transaction will be created. Where the application of the Exchange and Base Rates for the specified date results in a loss in Base Currency 2, that loss will be debited to the Account specified in the specification window and credited to the Account used in the original Transaction. Where a gain results, that gain will be credited to the Account specified in the specification window and debited to the Account used in the original Transaction.

If it is necessary to find out the value of the Transaction that will be created by this function, run the Base Currency Rate Change report first.

Accounts: Paste Special Account register, Nominal Ledger/System module; Range Reporting Alpha; If you want to apply the function to a specific Account or range of Accounts, specify that here.
Balancing Account: Paste Special Account register, Nominal Ledger/System module; Specify here the Account to be debited with losses and credited with gains in Base Currency 2. An Account must be specified here, otherwise the function will have no effect.
Transaction Date: Paste Special Current Date; Specify here the Transaction Date of the Transaction that will be created by the function. Transactions whose Transaction Date is later than this date will not be included in the scope of the function. If no date is entered, the current date will be used.
Date of Exchange Rate: Paste Special Current Date; The Exchange and Base Rates that were in use on the date specified here will be used in recalculating the balances in Base Currency 2. If no date is entered, the current date will be used.