Re: [CK-Ledger-users] Multicurrency?

[<chi...@ya...>]

robert :


>>I haven't had a need for multicurrency support even
though I live along the 
>>US/Mexican border.  All our transactions appear in
US dollars and with US 
>>vendors.  So, forgive me for asking a dumb
question... why couldn't the 
>>business simply record the transaction in their home
currency using that 
>>day's exchange rates?
>>
>>  
>>

For transactions that are completed instantaneously,
eg cross counter trade, this may be possible. However,
for transactions with an extended life (eg a Mexican
vendor sending a US dollar invoice to a US customer
and the
invoice got settled three months later), this foreign
currency denominated transaction (A/R asset) will have
to be reflected, during the interim period,
in the accounting book, with due regard to the
fluctuating exchange rate.  The same thing happens if
the Mexican cross counter vendor receives US
dollar proceeds and decides to hold on to the US
currency, pending favourable exchange rate before
converting the US dollar back to Mexican peso.

Cheers,
CK



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