Microsoft Office Accounting Professional 2008

Making currency adjustments

According to accounting legislation, you have to adjust the value of your current assets and liabilities in foreign currency at the end of each financial year. Since the amounts are still outstanding the gain or loss is considered unrealised.

The Currency Adjustment worksheet on the Currency menu calculates the unrealised gain or loss based on the exchange rate at the time of the adjustment.

Currency Adjustment worksheet

This is how it works:

• Select the date of the adjustment – typically the end of the fiscal year
• Select the currency to adjust.
• Office Accounting will now display all the customer, supplier and bank/credit card accounts for the selected currency and the corresponding exchange gain or loss.
• Check the checkboxes for the accounts you want to adjust.
• Press save and close to make the adjustment.
• The balance in Sterling will now have been adjusted to the new exchange rate.
• Continue with the remaining foreign currencies.