[SL] Re: foreign exchange

[Dieter S. <dsi...@sq...>]

There is no need to have a clearing account. Foreign currency transactions
always come in pairs. The native amount and the exchange rate difference.
If there is a gain or loss it is also recorded.


Dieter Simader    http://www.sql-ledger.org   (780) 472-8161
DWS Systems Inc.     Accounting Software       Fax: 478-5281
=========== On a clear disk you can seek forever ===========

On Tue, 7 Jan 2003, Conrad Richter wrote:

>
> I run a registered charity in Canada.  I recently installed SQL Ledger
> 2.0.2 and am populating the chart of accounts, etc.  I am a little
> unclear of how to handle USD transactions.
>
> The charity receives donations in both Canadian and U.S. dollars, and
> pays expenses in both currencies, and has separate bank accounts for
> the two currencies.  The currency of record for the charity is
> Canadian dollars.  In SQL-Ledger I have set up USD and CAD bank
> accounts.  But I am not sure what is the best way to use SQL-Ledger to
> handle the USD to CAD conversions.  To me, it would seem best to have
> USD amounts showing in their USD amounts, and then have a clearing take
> care of the conversion to CAD.  I would like that these postings to
> the clearing account to occur automatically every time a USD transaction
> is posted.  But how best to set up the chart of accounts and how best to
> enter the amounts using the existing modules.  Or, would it be better to
> construct a new module to handle these USD transactions?
>
> E.g. (assuming USD 1.00 = CAD 1.60 on the day the donation was received)
>
> Donation received:
>                             DR          CR
>     USD Bank Account       $100
>     USD Clearing            $60
>     Donations                          $160
>
> Transfer
>
>     CAD Bank Account        $80
>     USD Bank Account                    $50
>     USD Clearing                        $30
>
> Is there a way to enforce the use of the USD Clearing account anytime a
> USD transaction is entered?
>
> I notice that SQL-Ledger has some multicurrency support, but it is
> unclear to me how that feature is used.
>
> Any suggestions most appreciated.
>
> Conrad Richter
>
>