Balance Sheet conversions of Foreign Currency Accounts

John Graetz

I am hoping that somebody can assist me. I have noticed a large discrepancy between the value created in the Balance Sheet for a foreign currency account when running a balance sheet report, compared to converting that foreign currency balance as at say the currency rate as at today. In speaking with a Reckon employee, who sought help on the subject, I was told that the conversion rate that Reckon uses, is the rate showing on the Currency List which is my case, is the last rate that I have used. I have not been able to determine yet whether Reckon is keeping a running list of exchange rate changes. What I can determine now is that the exchange rate on the Currency List is not being used when running a Balance Sheet report. After pointing out that there were inconsistencies with this answer, the Reckon employee is seeking further information.

I have since located a post from May 2016 which tends to convey a completely different picture. In the reply provided by Reckon at that time, it tended to indicate that the conversion of the foreign currency account balance on the balance sheet, was based on an amalgamation of all of the historical transactions within the foreign currency account. It suggested that it would be necessary to re-value the Australian balance by running a Home Currency Adjustment. I cannot find such a specific thing within Reckon, so I assume that this would tend to be just an ordinary journal entry. Is somebody able to provide some clarification for me please?

John L G

John Graetz

Subsequent to my post, I was able to find information about a Home Currency Adjustment in the Reckon Help Menu, and have passed a dummy transaction which worked. So, problem appears to have been solved, based on the post from May 2016 (referred to above), rather than the response from Reckon this afternoon.

John L G