Create an Exchange Gain/Loss Account for Foreign Currencies

To set up your company to conduct business in a foreign currency

Step 1: Add exchange gain/loss account for foreign currencies

Step 2: Set up foreign currencies

Step 3: Add foreign currency bank accounts

Step 4: Choose linked accounts for foreign currency transactions

Step 5: Set method of pricing inventory and service items

Step 6: Add foreign prices to  inventory and service items

Step 7: Add foreign vendors

Step 8: Add foreign customers

Note: Before proceeding, check your Chart of Accounts for an account called Realized Exchange Gain/Loss. If you used a template to create your Sage Simply Accounting data, it is possible that you already have this account set up. If so, go on to Set up Foreign Currencies.

To set up an exchange gain/loss account for foreign currencies:

  1. In the Home window, from the Setup menu, choose Wizards and then Modify Accounts.
  2. When you are asked whether you want to Add, Modify, or Delete an account, select Add and click Next.
  3. Type an Expense number (in the 5000s) for this account and type Realized Exchange Gain/Loss as the account name. If you are unsure what account number to use, check with your accountant. When you have added the account, click Next.

    4. Note: To enter account information in English and French after turning on bilingual data entry, click . (Premium)

  4. If your company is incorporated, type the GIFI code you want to assign to this new account and click Next.
  5. To indicate this account is not a Heading or Total, select No and click Next.
  6. To indicate this account is not included in a Subtotal, select No and click Next.
  7. Select Loss in the Account Class list, and click Next.
  8. If you use projects, select Yes to allocate amounts from this account, and click Next.
  9. To omit this account from financial statements when the account has a zero balance, select No and click Next.
  10. To not allow budgeting for this account, select No and click Next.
  11. To close the wizard, select No and click Finish.