Forum Discussion

Geoffh1's avatar
Geoffh1
User
4 years ago

USD Bank Account

We have a USD bank account setup in Account Right, the USD balance reconciles but the NZD equivalent is significantly different to the balance I calculate the stored fx rate for the end of month.  Ca...
  • Steven_M's avatar
    Steven_M
    4 years ago

    Hi Geoffh1 


    The balance of an account is made up of the transactions of that account.

     

    In terms of foreign currency accounts, due to currency rate fluctuations, the local current account balance will not reflect the actual account balance, as the transactions will likely all have different rates on them, not the standard current rate. To more accurately reflect that balance you want to re-evaluate those accounts. Multi-currency - How to revalue at period end (unrealised gains/losses) has more information on that process.

Steven_M's avatar
Steven_M
Former Staff
4 years ago

Hi Geoffh1 


The balance of an account is made up of the transactions of that account.

 

In terms of foreign currency accounts, due to currency rate fluctuations, the local current account balance will not reflect the actual account balance, as the transactions will likely all have different rates on them, not the standard current rate. To more accurately reflect that balance you want to re-evaluate those accounts. Multi-currency - How to revalue at period end (unrealised gains/losses) has more information on that process.