How to handle multi-currency operations
Running multi-currency operations correctly comes down to one discipline: recording which rate applied at which moment. In Jestor, the transaction currency, the rate used and the converted value can all be fields, so figures remain reconcilable rather than approximate.
Why currency handling goes wrong quietly
A purchase is agreed in one currency, approved at a rate from that day, paid at a different rate weeks later, and reported in a third. Each step is reasonable and the totals do not match.
Nobody notices until reconciliation, and by then the difference is spread across dozens of records.
What explicit recording prevents:
- Values converted at an unknown rate
- Approval limits applied inconsistently across currencies
- Reports that do not reconcile with accounting
- Exchange differences with no visible origin
- Comparisons between periods distorted by rate movement
What to record per transaction
| Field | Why |
|---|---|
| Transaction currency | What was actually agreed |
| Original value | Never overwritten by a conversion |
| Rate used | Makes the conversion reproducible |
| Rate date | Which moment the rate refers to |
| Converted value | For internal comparison |
| Approval currency | Which limit was applied |
Step by step to structure it
- Store the original value in its own currency, always.
- Record the rate and its date alongside, rather than only the result.
- Decide which moment governs approval, and apply it consistently.
- Convert for comparison, never by overwriting the original.
- Keep approval limits in one currency, converting the request to compare.
- Let the ERP handle the accounting treatment of exchange differences.
- Show both values wherever someone makes a decision.
Why the original value must never be overwritten
Once a value is stored only in converted form, the original is unrecoverable and every later reconciliation becomes an estimate. Keeping the original alongside the conversion costs one field and preserves the ability to explain any difference.
Why choose Jestor
In Jestor, currency fields standardize the symbol per column, formulas calculate conversions from a recorded rate, approval routing can compare a converted value against a limit in your base currency, and the ERP integration passes the values while the accounting treatment of exchange differences stays in the ERP.
Frequently Asked Questions
Should I store only the converted value?
No. Keep the original alongside it, or reconciliation becomes an estimate. See jestor.com.
Which rate should approvals use?
Whichever moment you choose, applied consistently and recorded.
Who handles exchange differences?
The ERP, as part of the accounting treatment.
Video Tutorial: Step by Step
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