Setting the currency of an asset account

[ansj64]

I am trying to set up the currency of an asset account in another currency, not the base currency. I tried setting up the asset account but there is no option to set the currency of the said account other than the base currency? Is there a way around that?

[Manager_User]

Have you made other currencies?
If not here is how to do it:

Go to settings & click on currencies,

then click on foreign currencies,

now click on new foreign currency

in the code box put in the currencies short name (USD if setting to United States Dollar),
put in the currencies name, symbol & Decimal places (if different than 2) then click on create.

You now should be good to go if you have not already done this.

The base currency is your main currency.

Hope this helps!

[eko]

In addition to @Manager_User see also the guide on how to use foreign currencies in Manager at:

https://www2.manager.io/guides/9158

[ansj64]

I actually already have other currencies made. What i am trying to do is set the currency of an asset account to a currency different from the base currency but I dont see the option to do so when I create the asset account

[eko]

In general Assets are usually listed in a base currency (local) for the following reasons:

1. Consistency: Using a single currency makes it easier to compare financial information such as Balance sheet, Profit and Loss and Cash flow over time, which helps with understanding how a business is doing financially.
2. Simplification: Businesses can have purchased assets in different currencies, especially if they operate in multiple countries. Converting everything to one currency makes the financial statements simpler and easier to read.
3. Legal Requirements: Many countries require businesses to report their finances in the local base currency. This ensures that the financial reports meet local laws and accounting standards.
4. Managing Currency Risk: By using a base currency, a business can better keep track of how changes in exchange rates affect its assets and make the necessary adjustments to protect their value.
5. Tax Purposes: Tax authorities usually need financial reports in the local base currency so that taxes are calculated and paid correctly.

In conclusion, Assets in Manager are listed in the base currency to keep financial information consistent, simple, and easy to compare. It also helps a business to meet legal requirements, manage currency risks, and calculate taxes correctly.

[eko]

So having said that the Assets are always reported in the base currency you can distinguish them by using fixed asset control accounts. You must first have as per guide I linked to create a forex control account and a base-currency control account.

1. Assign forex bank account to forex control account and all others to base-currency control account.
2. Create a forex control account for suppliers and create a supplier in foreign currency assigned to that control account.
3. Create base-currency and forex currency Fixed asset control accounts.
4. Create a fixed asset under the Fixed assets tab and assign the forex control account (in screenshot below Euro)

5. Make a Payment for that fixed asset see screenshot

6. The resulting standard view only shows base-currency (applied the exchange rate).

7. Changing the standard view to Journal shows what happened

8. Organize the Chart of accounts such as create a Fixed assets group and assign the base currency (e.g. US$) and the Forex (in this case Euro) to that so in the summary screen Assets is looks like this.

9. Also in the Balance sheet report it will show (Note the amount is displayed in the base-currency not in Euro as per earlier explanation)

10. In the Bank and Cash account tab you will see the Euro bank amount in Euro and the others in their own currencies. When clicking on the amount you will see which transactions are made in that foreign currency.

Note that you must have forex Bank account(s), Supplier(s) and Customer(s) that are assigned to a forex control account when buying or selling in such forex.

[ansj64]

Thank you for the explanation. Quite a bit convoluted.

I do understand the idea that it should al be under the base currency but it should not be rocket science because at present I already have some
Liabilities in a different currency that gets converted to the base currency in the reports

I guess I have to do it another way because the is wont work as I intended

[eko]

You can do the same for Liabilities. Control accounts are powerful.