Almost all world currencies are available as a quantity. If you can’t find your currency please contact us to add it.
Introduction to Currency
In Formever the currency quantity is unique because conversion between currencies is not a fixed rate like conversion between Units. For example, conversion between length units (metric vs US) has a known, fixed conversion rate – 1" = 2.54cm. For currencies, however the currency exchange rate fluctuates.
In multi-currency Formever systems the exchange rate is recorded on a fiscal period basis on the Currency Exchange form. This exchange rate is used automatically by Formever when needed. For example, it is used by reports that show all amounts in the home currency or by data forms that accept quantities in a trading currency and display a result in the home currency.
Every Formever system has a home currency which is the currency on which a business bases all accounting. The home currency is established when a new Formever system is created. If the business does trade involving other countries it will likely have one or more trading currencies. Trading currencies can be added to the system when needed and are a simple configuration setting.
The fiscal period exchange rate can be over-ridden within a master form if there is an exchange rate quantity field on the form. Formever recognizes an exchange rate quantity field as a rate quantity of currency/currency. So if a master form captures purchase details with purchase costs in a trading currency and also captures an exchange rate quantity at the time of the purchase and is supposed to display the total purchases in the home currency it will use the on-form or local exchange rate rather than the fiscal period exchange rate.
Multiple Currency Processing
Multiple currency processing in a complicated subject. Handling multiple currencies in financial reports is more complicated then just applying exchange rates.
Peter Selinger has written a definitive description on all the issues around multiple currency accounting and the various solutions, see: Tutorial On Multiple Currency Accounting
Formever follows this analysis by implementing the concept of a trading account. This is an account that is linked to the asset/liability account that is in a trading currency. Basically this accounts the unrealized exchange gain/loss.
Design Tip:
Don't worry about all this foreign exchange stuff if your business operates with a single currency. In single currency Formever systems all the multi-currency aspects of Formever are hidden. This is part of the goal of Formever - to keep things simple and only present what is needed when it is needed.