Revalue bank account balance

Due to the fluctuations in foreign exchange rates, the converted home currency value of foreign currency transactions in your bank accounts may not align with the amount calculated using the exchange rate on any given day.

Accounting standards require that foreign currency balances be converted at the exchange rate prevailing on the balance sheet date. The Clear Books feature automates this conversion, ensuring the necessary foreign exchange adjustments are accurately reflected in your accounts.

Step 1.

Navigate to Money > Bank accounts and click on the name of the foreign bank account.

Step 2.

Enter the date on which the home currency balance is to be revalued, into the Revaluation Date box to the bottom left. The system will then convert the home currency balance on this date (our conversion rates are taken from XE.com).

Step 3.

The system will now create a journal to adjust the home currency balance based on the revaluation date. The foreign currency balance will remain the same.