Multi-Currency Module Q & A

1) Will the Multi-Currency Module handle transfers between different currency accounts?

Yes! The Multi-Currency Module can transfer between different currency accounts. The only safeguard is that invoices must have payment applied in the same currency in which they are written.

2) The allowed account types are Sales, Other Income, and Expenses.

If currencies you are dealing with are trending favorably for you during the year then the trading account will show a nice extra revenue stream. If other currencies aren't trading well in relation to your base currency then you can look at the tradingactivity as negatively affecting your revenue. We decided to look at it from this perspective rather than as an expense your company is incurring.

3) What should the Currency Trading GL Account GL be?

It should be an Other Expense or Other Income account named for example "Exchange Gain or Loss". It should not be an Asset or Liability account.