The base currency is the home currency of your business.
By default, every account is automatically configured to use the base currency, and all financial statements are presented in this currency.
To access Base Currency form, go to Settings tab, then Currencies.
Then click Base Currency.
The form has the following fields:
Users can also change the base currency for an existing business.
This is rare requirement since typically businesses will have single base currency throughout its lifetime.
The process to change base currency involves several steps to ensure all financial data remains accurate and consistent.
Follow these steps to change the base currency:
Update information on your Base Currency form to reflect new currency:
- Go to Settings tab, then Currencies, then Base Currency
- Set new code, name, currency symbol and decimal places (if applicable)
Create Previous Base Currency as a Foreign Currency:
- Go to Settings tab, then Currencies, then Foreign Currencies.
- Add the previous base currency as a new Foreign Currency.
Review and Update Currency for Balance Sheet Sub-Accounts:
- Go to the Bank and Cash Accounts tab and ensure bank and cash accounts that were previously using the base currency are now using the newly created foreign currency.
- Repeat this process under the Customers, Suppliers, Employees, and Special Accounts tabs.
Review and Update Currency for Transactions:
- Go to the Journal Entries tab and ensure all journal entries that were previously using the base currency are set to use the newly created foreign currency.
- Do the same under the Expense Claims tab if applicable.
Update Exchange Rates:
- Note that all previously entered exchange rates are now incorrect because they were based on the old base currency. These need to be updated.
- Update all exchange rates that reflect the new base currency.
Batch Update Transactions:
- After updating the exchange rates, batch update all transactions that used the old exchange rates to ensure they now use the new rates.
By following these steps, you can successfully change the base currency for your existing business, ensuring all financial data is accurately represented in the new base currency.