Exchange Account

Saasu like most modern accounting systems uses a dual account method for multi-currency accounts. When you create a foreign currency account Saasu creates an associated Exchange Account at the same time so that we can capture the foreign exchange differential back to your Saasu files base currency.

NOTE: All accounts including your foreign currency account and its associated exchange account are in your base currency. However your foreign currency account when viewed by itself represents your foreign currency account as though it is in that currency.

Lets say you are a Australian company whose Saasu file is reported in AU dollars.

  • You can add a bank account for USD currency. The main concept to note in Saasu is that ALL the accounts in the file are recorded in the base currency.
  • You create a transaction in USD100.00.
  • If the exchange rate for USD to AUD = 1.25 then you have AUD125.00 in value.
  • Saasu books AUD25.00 to your exchange account and your USD bank account will display AUD100.00.
    NOTE: If you are going to view this USA bank account in isolation then you can regard this as USD100.00 for information purposes only. To get the actual amount, add the USD account amount of AUD100 to the AUD25.00

You can use the General Ledger Detail report to look at the exchange account (in the above example for a purchase it would be the Liability: USD Accounts Payable Exchange account) to determine any unrealised foreign currency exchange amounts.