I frequently have expense claims in a currency different from my base currency. These are also paid in the same foreign currency.
There is no problem to record these in Manager, but if the currency exchange rates have changed from the time the Expense Claim was recorded to the time it is paid I will end up with a “balance” for this Expense Claim Payer. This balance is caused by the fluctuation in the foreign currency exchange rates from the time it was recorded to the time it was paid.
The present “work around” would be either of the following, neither that is very attractive:
- To always book expense claims in Base Currency (meaning my accounts will not show the accurate situation);
- Only to record expense claims at the time they are paid (meaning I will not have a true accrued view of my accounts); or
- To make a journal entry to remove this “foreign currency balance” after each time I pay an expense claim (very “messy” if you have many expense claims and also these Journal Entries needs to be updated if and when you update your “Exchange rates”)
The “real solution” to this is to be able to define the currency for each “Expense Claim Payer” in a similar way like we today define currency for each “Customer” and each “Supplier”. Manager would then automatically handle these situations and move whatever balance to the “Foreign Exchange gain (loss)” account.