Accounts in foreign currencies

Accounts in Foreign Currencies

If you have a bank account, investment account, or cash box that holds money in a foreign currency (for example, a USD bank account abroad, or a EUR petty-cash drawer), you can create and track that account in Usystems in its native currency. This keeps your accounting clear: all transactions in that account are recorded in the currency the account uses.

Before you start

• You must have admin access to the chart of accounts and account settings.
• At least one foreign currency must be set up. Confirm this in Settings → Currencies.
• Know the account type (bank, cash, etc.) and the currency the account will hold.

Steps to create a foreign-currency account

1. Open Accounts (Chart of Accounts). Open in Usystems

2. Click New Account (or the button to add a new account).

3. Fill in the basic details:

   • Account Name: e.g., "USD Bank Account" or "EUR Petty Cash"
   • Account Type: Choose the appropriate type (e.g., Bank Account, Cash, Current Asset).
   • Currency: Select the foreign currency this account will use (e.g., USD, EUR).

4. Configure other settings as needed (account code, GL posting group, etc.) and click Save.

Using the foreign-currency account

• Payments in: When you receive money into this account or create a payment entry, you can select this account and enter the amount in the account's currency. Usystems will automatically convert it to your local currency for consolidated reporting.
• Payments out: Similarly, when you pay from this account, the payment is recorded in the account's currency.
• Bank reconciliation: When you reconcile the account, compare it against your bank statement in the account's currency; do not try to reconcile foreign currency transactions in local currency.

Reporting & accounting impact

• Balance sheet: Foreign-currency accounts appear on your balance sheet (Asset section) with balances shown in the local currency equivalent at the current exchange rate.
• Account history: The account ledger shows all transactions in the account's currency, with a conversion column to local currency if needed.
• Exchange-rate adjustments: At period end (month, quarter, year), unrealized exchange gains or losses on foreign-currency accounts may be calculated and posted to help you comply with accounting standards. Your admin controls this setting.

Tips & common mistakes

• Use one account per currency. Do not mix multiple currencies in a single cash or bank account (unless the bank itself does so—in that case, document it carefully).
• Track the exchange rate at transaction time. Each payment in or out should use the rate on the date of the transaction, not a rounded or assumed rate.
• Unrealized gains and losses are tax/standard-setting dependent. Ask your accountant or auditor about whether your region requires you to record unrealized FX gains and losses at period end.
• Account currency is permanent. Once created, the currency of a foreign-currency account should not be changed. Create a new account if the currency changes.

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