Handling Foreign Currency

1. Sometimes transactions occur in foreign currency. We record the double entry amounts in local currency (after conversion) but we still interested to know the transaction history of amounts in the foreign currency.

2. Use a dedicated column in data entry sheet (sheet Data) to record the amounts in the foreign currency. In this book, column used to record amounts in foreign currency is column E in sheet Data.

3. Once we record the amounts in the foreign currency, we need to format the amounts to a format which show the foreign currency sign such as USD, JPY, etc.

4. If we have more than one foreign currency, we may want to see the rows containing a particular foreign currency only. This can be done via filtering operation. The total amounts of a particular foreign currency will be shown in row Total.

5. To get the sum of all amounts of foreign currency for a particular Accounts, use SUMIF function.

6. To view rows of transaction for a particular Accounts having foreign currency, follow the following steps.

6.1 Make a copy of the data entry sheet.
6.2 On the copy sheet, sort the data according to Accounts, then by Date.
6.3 Still on the copy sheet, put the data in Filtering mode.
6.4 Select the Accounts that we interested.


7. We can delete the copy sheet once done because we can easily rebuild.