Recording Currency Exchange in Ledgers / Registers

When you are receiving funds in another currency and depositing that into your account, here's how to easily record the original amount (in the original currency) as well as the exchange rate, using Connection Card Pro!

First, set up your Chart of Accounts correctly to handle this

• Go to Accounting > Financial Settings > Chart of Accounts.
  
• Add a "Currency Exchange" Income account to your list of available Income Accounts.

Note: If you are also recording currency exchange for expenses, then you should create a "Currency Exchange" expense account as well. However, be sure to only use the Currency Exchange Income account for deposits, and only use the Currency Exchange Expense account for expenses.

When Entering a Transaction

1. Complete the entry as you normally would, using each line item to enter each separate amount (whether a separate payment source or a separate donor).
   
   
2. If the transaction was received in a different currency than the currency you use, we recommend adding the original currency in the memo. For example, if you normally operate in CAD and receive money from a US source, you can add "(USD)" to the memo, to help you remember that this line item was in another currency.
   
   
3. Then, use the next line item to enter the Currency Exchange Rate and Amount. We recommend using the memo column to include the actual exchange rate you received for the deposit. (You likely won't know this until your bank gives you their final rate at the time of deposit.)
   
   
4. Select the Currency Exchange income account from your Chart of Accounts
   
   
5. And enter the difference in exchange rate. Use a negative number if the exchanged amount is less than the original amount.

If you are issuing tax receipts only in your organization's currency, then you should also include the same donor in the Payer column of the exchange rate so that the donor is credited with the total exchanged amount. However, if you are issuing tax receipts in the donor's original currency or if you are not concerned with tax receipts for foreign donors, then you may leave the Payer column blank. 

Alternatively, you could include the same donor's name in the Payer column, so that it's clear that this is linked to that donor, but uncheck the TD (tax deductible) checkbox if you do not want it being included in their tax receipts.