I think I begin to realise that I have not fully utilised Manager’s ability here.
I have several “Balance Sheet Account Groups” which contains separate accounts in various foreign currencies. Typical examples are;
“Investment in Subsidiaries”, where I have the share capital held in foreign subsidiaries (in the original currency)
“Inter company balances”, where I keep debts or credits from “related companies” (which may be in various currencies)
I now realise that unlike “Bank Accounts”, “Accounts Receivables” and “Accounts payables” the individual records in the accounts mentioned above are converted to base currency at the time of transaction only (which is logical and understandable). However this will lead to extra work when reconciliation needs to be done (like e.g. balancing all inter company accounts at the end of financial year.)
I assume a better way would have been to set these up as “Special Accounts” rather than ordinary balance sheet accounts…?
Is there someone out there that can provide a short guide for how these special accounts (and the associated “control accounts”) are best used in this scenario. In my balance sheet I eventually want to see a “group” called e.g. “Inter company balances”, with sub accounts/lines for each company. (Please note that there may be postings in various currencies for the same company).