Why don’t you add an option to record the transactions in two different currencies?
the option can be activated from settings for example and for a name I suggest (double currency option)
This will save the users a lot of hostel with the exchange rates and will enable them to extract reports in the currency of their choice.
please consider
There are several reasons:
- Accounting records must always be reduced to a single currency to balance the books.
- You can already make entries in multiple currencies when bank or cash accounts, customers or suppliers, or employees are denominated in foreign currencies. And an account, a bank account for example, can only be in one currency.
- Allowing entries in multiple currencies would not free you from dealing with exchange rates. In fact, it would increase the importance of exchange rate updates.
- Reports in alternate currencies would not reflect the accounting history they contain.
1 Like
But I still can’t understand why we can’t have reports translated to other currencies?
It’s useful when you a different functional currency than the one you’re in, especially when your parent company uses another currency.
You’d assume that this wouldn’t be hard. I mean most users would be happy to translate their BS using closing rates and P&L using simple average rates. Anything more complex than that then it’s on the user to do manually do it.
Things won’t balance. The extended accounting equation:
Assets + Expenses = Liabilities + Equity + Income
will produce an imbalance between debits and credits, because different financial statements will be using different exchange rates. And that ignores the effects of multiple exchange rates on Retained earnings.
Yes, but anyone who has a business in translating financials should be able to identify and classify the difference in currency translation reserve.
But then again, that’s not very far off from doing the entire translation manually.