Currency Translation of Company Journals by Transaction

Currency translation takes place per transaction row in each journal entry.

Each company journal is converted in detail, which means that currency translation differences will occur in each individual journal entry, if the different currency translation codes are used for different accounts within the same journal entry. The currency translation differences will be calculated and booked in accordance with the rules in the account structure and in the general configuration.

Opening Balances

Currency rates for opening balances are loaded from the same journal type and journal entry as the previous year.

Note: It is important that the company journals entered and then copied between years keep their journal number, as opening balance rates are retrieved from the same journal entry the previous year (currency translation code C).

For more information, see Copying Company Journals.

Accounts with currency translation code I do, however, load the rate from the same journal type the previous year. If you want a detailed currency translation of accounts using currency translation code I for company journals, you have to define this in the general configuration.

For more information, see Detailed Currency Translation of Accounts with Currency Translation Code I

Journal Number Order

If you are only copying fixed/reversing journals between two years, the journal number order can change. The new numerical order can create problems as opening balances are loaded from previous year’s journal type and journal number (conversion code C). If the detailed conversion has been defined in the general configuration, it also refers to conversion code I.

If you are working with fixed/reversing/temporary journals, we recommend that you always set up the fixed and reversing journals first in the journal number series. This way, the journal number order will never be changed when copying to the next year. You can also choose to copy journals between years without changing the journal number in the general configuration.

Historical Rates

When converting each transaction in a company journal, different historical rates (conversion codes E, F, or G) can be used for different journal types. Different rates can also be used for different journal entries.

Period One

It is possible to enter currency converted values for opening balances, relating to the very first period, in a special menu, Maintain/Configuration/Start Rates. The menu is used for company and group journals only.

For more information, see Enter Start Rates.