Sage valuing foreign bank balances

Sage valuing foreign bank balances

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Hi,

I have two foreign bank accounts set up (by my predecessors) in Sage - a USD account and a EUR account. Now that I've reconciled the accounts, I can see that while the currency balance is correct, the 'base' GBP balance is not. I assume this is to do with currency settings somewhere but I have looked under the currency section within the Settings menu and the correct rates appear to be being used. Where else should I look?!

Thank you.

Replies (12)

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By johngroganjga
28th Jul 2014 08:05

You just need to reconcile the two balances to see where the discrepancy has arisen. Start from when the balances were last in agreement. No substitute for rolling your sleeves up.

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By paulwakefield1
28th Jul 2014 09:08

Have you

revalued the bank? Modules - Wizard -Foreign Bank revaluation.

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By Richard Willis
28th Jul 2014 12:33

When you run the Foreign Bank Revaluation

under 'Bank', top left menu, you have to enter the rate at which you wish to revalue; it does NOT pick up the current rate from the currency settings!

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By 27Spots
28th Jul 2014 21:54

Hmm, not afraid iof rolling my sleeves up - the account does reconcile in USD, it's he base currency column that's wrong.

Thank you, Paul and Richard, I'll check the amounts entered within the 'Bank' section.

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By johngroganjga
29th Jul 2014 09:45

You may have misunderstood. The two balances I said you should roll your sleeves up and reconcile were the currency and sterling equivalent balances at the same date. The problems may well stem from changes in the exchange rate Sage is told to use. Obviously these need to be tweaked over time, and perhaps the consequential exchange adjustments have not been put through as they should have been. Just a thought.

I was not talking about reconciling the currency balance in Sage to the bank statement, as you seem to have assumed.

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By teresaweezer
30th Jul 2014 16:18

Agree with Richard

I have a number of clients who use multi-currency bank accounts.  Although the bank statements are reconciled on a monthly basis, if they do not use the revaluation wizard then the GBP equivalents are a nonsense if there are huge fluctuation in exchange rates.  As Richard has advised, you simply need to run the bank revaluation wizard on all the currency bank accounts and take the currency adjustments cr/dr on the chin!

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By 27Spots
31st Jul 2014 00:02

One last question
Thanks, I've used the revaluation wizard and taken the fx hit...

However, I have one last account on which to perform the reval...and I can't see how to make it show the correct base balance. It has a USD value of 4.70 but a GBP value of ~1,200. Any value I put in as the fx rate at which to value gives me a 'new' base balance of nil, not GBP 2.75 (ish). Does anyone have any thoughts?

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By Richard Willis
31st Jul 2014 06:48

sounds like
Sorry to sound patronising but are you sure you have got the decimal point in the correct place OR are you using the inverse rate by any chance?

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By 27Spots
31st Jul 2014 07:53

That's what I wondered but I've checked and double checked! It's very frustrating!

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By johngroganjga
31st Jul 2014 09:06

As I said, what you have to do is roll your sleeves up and find the differences, then account for them.

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By paulwakefield1
31st Jul 2014 09:28

Check dates

Does the $4.70 balance include any transactions after the date at which you are revaluing?

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By 27Spots
13th Aug 2014 11:26

All sorted
I've resolved it and can see that it just needed the revaluation wizard to be run (no month end processed been run at all by my predecessors). Thank you to all those who had helpful suggestions :-)

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