> Pretty major thing. Not quite as simple as it looks on the surface. The
> major concept that throws a wrench into the works is the varying
conversion
> rates. Pretty simple to flip-flop transactions at the current exchange
> rate. It gets real sticky at the G/L level where for any given
transaction
> you would have gains or losses due to currency fluctuations. Your $1000
> booked invoice only nets you the equivalent of $950 when paid. The
other
> little pain is showing old transactions. What rate do you use? It
gets
> to be quite interesting.
sorry about the previous post - I must have hit the send button on a draft.
Here is what I meant to say:
You have to have a currency control account in the general ledger, usually
one for each currency. Then you have currency revaluation process that runs
periodically and calcualates the difference between the value on the
transaction and the value at the current exchange rate. You adjust the
transaction by that amount and also post it to the currency control
account.
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