Bank account reconciliation with two different currencies

Hello,

I am the owner of a small business using a Business Lite subscription.

As part of my business operations, I need to purchase items in a foreign currency EURO.

I created in MYOB a separate bank account in AUD to manage and record those transactions in foreign currencies. This account in MYOB is not linked to my external EURO bank account (MYOB business does not manage multi-currencies).

Due to the small size of my business and the small volume of transactions in foreign currencies, I would like to stick to my Business Lite subscription for the time being.

The way I have been managing and recording those transactions in foreign currency EUR has not been ideal and it has created a complexity in reconciliating that bank account in MYOB.

Below the details of my initial process:

• transfer AUD to a multi-currency account on an external platform
• convert this AUD amount into the desired foreign currency EURO at a given exchange rate on the day
• make purchase in that foreign currency at various time intervals

The issue I have faced is that the exchange rate used at the time of the transfer is different that the exchange rate at the time of each purchase.

After recording those purchases into MYOB as a "spend money" item, I am not able to reconcile that account due to the currency fluctuations.

After facing this issue, I have since changed my approach and I do not convert ahead the money from AUD to EUR but only the specific amount at the time of purchase. This allows me to have now a perfect conversion match when I record each foreign currencies transaction in MYOB.

However, I still have to clear the mis-alignment from my earlier process.

What would be the best practice in MYOB Business product to record a realised currency gain or loss ? Ideally I would only record one operation to cover the full financial year if possible and reconcile that bank account.

Thank you in advance for your feedback.