Control over being able to post 1 currency only per voucher

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Posted on by Veronika Filonenko

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Hello,

The multi-currency functionality in journals is great but it is too wide open which leads to inconsistencies in reporting and I'll give an example.

It is possible to enter in a general journal a transaction to 1 single voucher with multiple currencies.

The accounting and the reporting totals will balance (print screen 1), but your transaction total will not (print screen 2). Because simply you cannot add up different currencies together.

You may say the user must know that, yes, but the system allows that human error and I'm look for a system control.

In journal everything balances:

But from a reporting perspective, when you look at a specific voucher, it does not balance at the transaction level. Which does not make sense and you find out only too late.

I wonder if someone has found a control for this type of entry. The control I am looking for is to limit the ability to post multiple currencies on 1 voucher.

thanks

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André Arnaud de Cal... 305,125 Super User 2026 Season 1 on at

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Hi Veronika,

You are totalling a wrong column. The amount in transaction currency is in the currency of the line. Of course this will not be zero as it contains amounts in different currencies. You can only sum the Amount and Amount in reporting currency.

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MATTGUO 22,353 Moderator on at

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Hi Veronika,

Why do you have this question? What do you mean "but the system allows that human error"?

There are three currency types.

Transaction currency: The currency in which a transaction originates.

Accounting currency: The primary currency in which a legal entity maintains its financial records.

Reporting currency: The reporting currency of the ledger.

If there is only one currency, how to record the foreign currency transaction?

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Veronika Filonenko 1,261 on at

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Hi André,

I know that I'm totaling the wrong column as I mentioned it when wrote the question.

What a CFO expects when analyzing transactions from BI perspective (and this is a real situation that was brought up to me after a system control was done) is to look at a voucher from any column and that it balances out, which makes total sense. Plus, this customer is not a foreigner to currencies as they manage all of them as this is a global customer. In order to avoid this flexibility, currencies can't be mixed. It It is possible, yes. Is it best practice from accounting perspective, non. It happens mostly when transferring money across banks in different currencies with FX impacts. For those cases, 2 entries must be done if there is more then 1 currency involved in a transaction. If you don't do that, you will never be able to analyse any report from a transaction currency perspective as they will never make sense.

So now, we must train and control users to enter entries without mixing currencies.

It is a choice, yes, and we would like to make that choice a rule by locking this down.

Think from a multi-currencies application we would have something to help us narrow down a user flexibility in a GL entry.

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Beth Zapadka 190 on at

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Hi Veronika, I'm experiencing a similar issue and wondering if you found a system control. I'm just at the beginning of my investigation.

Thanks,

Beth

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Veronika Filonenko 1,261 on at

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Hi Beth,

No there is no system control for that.

Only training of users and a lot of awareness :)

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