Level 10

Banking

The exchange rate is locked in on the day of each transaction. This is correct from an accounting point of view based on the principle of valuing assets at cost (or really the lower of cost or market value).  If you want to revalue the asset to an exchange rate on another day, say a report date, the end of the month or year, then there is a tool to create an entry, to a P&L account for Exchange Gains or Losses, on a specific date. Go to Gear>All Lists>Currencies and click the drop down on the right of the currency, and select Revalue. Enter the date, confirm the rate and accounts, and click Revalue and Save