• EH Lim

The Delta account (AccountCode-~~DEL)


In the MoneyWorks general ledger, a foreign currency account is represented as two separate amounts: the value in the foreign currency, and the value of the difference between that currency and the base currency. The difference is stored in a (normally hidden) account called a “delta account”, so that the following is always true: Base Currency Value = Foreign Currency Value + Delta Value -- MoneyWorks v7 User Guide Page G272, Multi-currencies: Behind the Scenes

You can keep the bank, accounts receivable and account payable account in foreign currency; and each of these accounts has a Delta account. The -~~DEL account is a system account, which captures the "exchange ratio" of a foreign currency account.

Assuming you record a foreign currency Purchase Invoice of US$5,786.00 in the MoneyWorks accounting system at an exchange of 0.7500USD:1.0000SGD (Singapore Dollar is the Base currency). The journal behind:

Debit 160.100: Inventory Assets account 7,714.67

Credit 230.200: Accounts Payable (USD) 5,786.00 Credit 230.200-~~DEL: Accounts Payable (USD 1,928.67

The foreign currency value of 5,786.00 (account code 230.200) and the Delta Value of 1,928.67 (account code 230.200-~~DEL) added up is the base currency value 7,714.67 (5,786 / 0.75).

#multiplecurrencies #Macaccountingsoftware #MoneyWorksaccountingsoftware #accountingsoftwareMalaysia #accountingsoftwareHongKong #accountingsoftwareSingapore #accountingsoftwareMyanmar

33 views

Visit

33 Ubi Avenue 3 #07-50 VERTEX (Tower A) Singapore 408868 

Call

T: +65 6634 6065

F: +65 6337 2616

  • facebook

© 2013 by

LedgerWorks Pte Ltd

Proudly made by Wix.com