Currencies in ACCOUNTING

Owned by Hauke Gulich
Last updated: Apr 17, 2024 by Bärbel Neitzel
4 min read

Contents

Topic in the order

 

image-20240417-083924.png

Information about currency conversions

The currency conversions are divided into two types.

The system distinguishes between conversions

  • of individual files/amounts within an invoice and

  • of an entire invoice in foreign currency different from the house currency. 

This contains amounts in both house and foreign currencies.

The following paragraphs explain the necessary basic data settings and the fixed and variable components in an invoice.

Different combinations are shown by means of examples.

Terms house currency and foreign currency in CargoSoft

House currency

EURO as house currency.

 

image-20240417-084011.png

The official currency of the country your company is located in.

This is the euro in most European countries.
Exceptions: Scandinavia, UK, Switzerland, Liechtenstein.

The house currency is recorded in your company basic data → Company main data tab in GEN COMPANY PARAMETER.

 

 

Foreign currency

Any other currency.

Since not all companies have foreign currency accounts, the foreign currency amounts must be converted into the house currency.

(If these are companies or branches outside of Europe, the currency is not the Euro. EUR is therefore a foreign curency.)

 

 

Rounding methods

This affects the fields

  • No. of decimal places (Invoicing)

  • Rounding method

  • Centime rounding

  • and the checkboxes of the sector Apply rounding procedure on:

Fields in the currency header data

 

Fields in the currency header data

 

No. of decimal places (invoicing)

 

This field defines the number of decimal places or integers for the rounding.

The number of decimal places also applies to the currency display in the invoicing.

Rounding method

 

The rounding method defines how the amounts are rounded.

If the amounts in the invoicing are converted into a foreign currency, the rounding methods recorded in the currency take effect.

This applies to both the net amount as well as the tax amount.

 

 

These checkboxes indicate where the rounding method is used.

This method is applied to the rounding method of currencies as well as the centime rounding.

Please also note the settings in basic data COMPANY →  Accounts/allocation tab in FINANCIAL INTERFACE.

  • Calculate total tax amount - Receivable

  • Calculate total tax amount - Payable

  • Sum preserving rounding on single tax amount - Receivables

  • Sum preserving rounding on single tax amount - Payables

 

 

Centime rounding

This function was developed for the Swiss franc.

If this checkbox is activated, the last decimal place is rounded to full 5 or 10.

  • The system considers the rule for the number of decimal places.

  • As well as the rounding method.

  • If neither has been recorded, the amount is rounded to 2 decimal places (normal rounding).

Rates of exchange tab in Currencies

Enter the current date into the field Vaild from and the current rate into the field R.O.E. 
When invoicing an amount in the foreign currency with this R.O.E., the program automatically draws upon the rate of the day the voucher was entered.

This table exists separately for receivables and payables. The program accesses the correct table for the respective voucher entry.