Automatic adjustments to exchange account

[ArthurSpooner]

Hi,

I currently have 3 bank accounts as follows AUD, USD and GBP.

The two foreign currency bank accounts are set up as such and have corresponding exchange accounts.

My assumption was that if I were to update the exchange rate in the currencies list, the exchange account would automatically update to reflect the changing foreign exchange rate. 

For example:

If I had on hand USD $100 and the exchange rate was USD/AUD 1/1.25, the GL accounts would show "USD Bank account": $100 and "exchange account": AUD $25 meaning an AUD balance of $125 is reflected in the GL.

If I then update the exchange rate to 1:1.50, I would have expected that the two accounts would then show "USD Bank account": $100 and "exchange account": AUD $50 meaning an AUD balance of $150 is reflected in the GL. The $25 movement is recorded as an unrealised FX gain.

However, when I update the foreign exchange rate at the moment, this does not seem to occur. Surely a manual entry is not required?

Any help is appreciated. I'm using AccountRight Premier V19.6.

Thanks

[gavin12345 · Accepted solution]

Hi @ArthurSpooner

Classic MYOB (v19) only deals with realised gains. The exchange rate applies at the time of a transaction. Once you set a rate it applies to all transactions until you change it. Changing the rate (or any other setting in MYOB) only affects subsequent transactions, it does not change already recorded transactions.

Regards

Gavin