Exchange Rates

In some instances where goods are bought and sold abroad, fluctuations in the rates of exchange can occur, when converting currency to or from Sage Line 50. This can lead to discrepancies between the amount of the original invoice raised and the amount actually received or paid.

To deal with an exchange rate, create a Nominal Ledger Account for Exchange Rate Variance. For example, you may use the nominal account 7906.

Check that this new nominal account appears in the Overheads section of the Nominal Ledger Chart of Accounts layout you use for your Profit and Loss report.

For example, the Invoice value and Payment value may differ when you sell goods to a customer abroad or purchase goods from a supplier abroad.