Multi-Currency Accounting

This guide explains how PinkApple handles multiple currencies in the general ledger, including exchange rates, dual-balance tracking, and foreign-currency revaluation.

Overview

PinkApple supports multi-currency accounting with:

• A base (functional) currency configured per company
• Multiple transaction currencies for posting
• Dual-balance tracking: every GL line stores both transaction amount and base-equivalent amount
• Periodic FX revaluation to mark-to-market foreign currency balances

Currency Setup

Base Currency

The base currency is set in Administration → Financial Setup → Configurations under the key GL_DEFAULT_CURRENCY. All reporting and financial statements default to this currency.

Active Currencies

Manage currencies at Administration → Financial Setup → Currency:

1. Add currencies from the ISO 4217 list
2. Mark currencies as "Used" to enable them for transactions
3. Configure approval workflow for new currencies

Exchange Rates

Exchange rates are maintained at Administration → Financial Setup → Exchange Rates:

• Enter rates as: 1 unit of foreign currency = X units of base currency
• Set an effective date for each rate
• Rates require approval before becoming active
• The system uses the most recent approved rate on or before the transaction date

TIP

For organisations with daily rate changes, consider setting up an automated exchange rate feed via the API endpoint.

Posting in Foreign Currency

When posting a journal entry in a foreign currency:

1. Select the transaction currency on the journal header or line
2. Enter amounts in the transaction currency
3. The system converts to base currency using the effective exchange rate
4. Both amounts are stored: transaction_amount and base_amount

The GL balance is maintained in both currencies:

• Transaction balance: Sum of entries in the original transaction currency
• Base balance: Sum of entries converted to the functional currency at historical rates

FX Revaluation

At period-end, foreign currency balances may need revaluation to reflect current exchange rates.

What Gets Revalued

The revaluation process targets COA accounts with non-zero balances in a currency different from the base currency. Specifically:

• Balance Sheet accounts with foreign currency exposure
• Accounts tagged for FX revaluation via system tags

How It Works

1. The system reads the latest exchange rate for each foreign currency
2. Calculates the revalued base amount: transaction_balance × closing_rate
3. Compares to the current base balance
4. Posts the difference as a revaluation gain or loss

Running Revaluation

From Accounting → Fiscal Periods → Period-End Actions → Run FX Revaluation:

• Optionally specify an as-of date (defaults to today)
• Optionally limit to a specific business unit
• The system posts entries to the FX_REVALUATION_GAIN and FX_REVALUATION_LOSS tagged COAs

Revaluation Entries

The procedure posts balanced journal entries:

Scenario	Debit	Credit
Foreign currency appreciated (gain)	Foreign COA	FX Revaluation Gain
Foreign currency depreciated (loss)	FX Revaluation Loss	Foreign COA

System Tags for Multi-Currency

Tag	Purpose
FX_REVALUATION_GAIN	COA account for unrealised FX gains
FX_REVALUATION_LOSS	COA account for unrealised FX losses
REALISED_FX_GAIN	COA account for realised FX gains (settlement)
REALISED_FX_LOSS	COA account for realised FX losses (settlement)

Reporting

Multi-Currency Trial Balance

The Trial Balance report supports currency filtering:

• Filter by specific currency to see only that currency's balances
• Use the base currency to see a consolidated view
• Compare translated amounts across currencies

Financial Statements

Financial statements always present in the base currency by default. The template system allows:

• Multi-currency comparative columns
• Currency conversion notes
• Exchange rate disclosure

Best Practices

• Keep exchange rates current — stale rates cause inaccurate conversions
• Run FX revaluation monthly at minimum (before period close)
• Use separate COA accounts for realised vs. unrealised FX gains/losses
• Configure the FX_REVALUATION_GAIN and FX_REVALUATION_LOSS tags before first revaluation run
• Review revaluation entries for reasonableness before closing the period