A G/L account that is kept in a foreign currency.

You need a foreign currency account if you, for example, process payments in a foreign currency. If you have set up a foreign exchange account at a bank, it is a good idea to manage this FI account in that currency as well. By doing this, you can compare the transaction figures with the account balance from the bank statement.

You mark an account as being a foreign currency account by entering the desired foreign currency as the account currency in the master record:

• The account can then only be posted to in this foreign currency.
• The transaction figures and the account balance are kept in the foreign currency entered and in the local currency.