Example

I want to transfer USD $100.00 from my US bank account to my Euro bank account. For this example we'll use these exchange rates.

USD $1=EURO 0.8333333 or EURO 1=USD $1.20

Local $1=EURO 0.625 or EURO 1=Local $1.60

Local $1=USD $0.75 or USD $1 =Local $1.333333

Before you begin

The tasks below assume you have activated AccountRight's multicurrency feature (Setup > Preferences > System tab >  I Deal in Multiple Currencies).

Create an asset account (Accounts > Accounts List > Asset tab > New). This account is set up as a local currency account.

Set the Account Type to Bank and name the account Currency Transfer Holding.

Here's our example

Complete the transfer by recording a Spend Money transaction to take the funds from one currency account, then record a Receive Money transaction to move the funds into the other currency account.

To record the Spend Money

1. Enter a Spend Money transaction (Banking > Spend Money).
2. Click the Currency button and change the currency to the foreign currency where you are transferring funds from.
3. Change the exchange rate to reflect the rate between your local currency and the currency being transferred from.
   Here's our example:
   
4. Click OK.
5. Change Pay from Account field to the Foreign Currency Bank Account. This is the foreign bank account you are transferring funds from.
6. Make the Allocation Account the Currency Transfer Holding asset account created earlier.
7. Enter the amount that you are transferring from in the foreign currency and ensure the correct date is entered.
   AccountRight will calculate the value of the transfer into the foreign currency where you will be transferring the funds to and store this value in the Currency Transfer Holding asset account.
   
8. Click Record.

To record the Receive Money

1. Enter a Receive Money transaction (Banking > Receive Money).
2. Click the Currency button and change the Currency to the foreign currency where you are transferring funds to.
3. Change the exchange rate to reflect the rate between your local currency and the currency being transferred to.
   
4. Change the Deposit to Account field to the Foreign Currency Bank Account you are transferring to.
5. Make the Allocation Account the Currency Transfer Holding asset account created earlier.
6. Enter the amount that you are transferring in the currency of the Bank Account you are transferring to. This should be the value of the Currency Transfer Holding asset account.
   
7. Click Record. The value will be transferred and the Currency Transfer Holding asset account will be zero.