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VT Transaction+

Navigation: Multi-currency accounting

Entering transactions

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The Payments And Receipts dialog does not support currency transactions. Otherwise, you can enter currency transactions using any of the transaction entry methods.

Currency transactions fall into two groups:

Transactions that do not involve the actual exchange of currencies. For example: entering a purchase invoice denominated in Euros; the payment of a Euro denominated account balance out of a Euro bank account; or a payment out of a Euro bank account analysed directly to expenses

Transactions that do involve an exchange of currencies. For instance: the transfer of money from a Euro bank account to a Sterling or Dollar bank account; or the payment of a Euro denominated account balance out of a Sterling or Dollar bank account

Transactions that do not involve an exchange of currencies are entered in the normal way. If an account has not been used before, you have to specify the currency. Thereafter this setting is remembered.

There are only three ways of correctly entering transactions that involve the exchange of currencies:

Using the Transfer Between Banks Accounts dialog (TRF button on the main toolbar). With this method, the actual amounts paid into and out of both bank accounts must be entered. An entry is then automatically made to the exchange differences account if the exchange rate given by the bank is not identical to the rate for the period set up in VT Transaction+. Any bank charges are also included in this entry

Selecting invoices in an account window and clicking on the PAY, CHQ or REC buttons that appear in the toolbar just above the entries. If the invoices are in a different currency to the selected bank account, an additional dialog is shown asking for the actual amount paid into or received by the bank. An entry is then automatically made to the exchange differences account if the exchange rate given by the bank is not identical to the rate for the period set up in VT Transaction+. Any bank charges are also included in this entry

Using the journal dialog (JRN button on the main toolbar). This is only necessary if neither of the above methods is applicable. A journal can be used to enter any combination of currency, base, exchange difference and bank charge entries

To see how multi-currency works in practice in VT Transaction+, please refer to the Multi-currency examples.