ANSWER ID:9336For businesses with international offices, it is not uncommon to have bank accounts in foreign currencies. From time to time, it may be necessary to transfer AccountRight Premier and Enterprise only If you need to transfer amounts from one foreign currency bank account to another foreign currency bank account. This support note explains what is involved and , we'll step you through how this is done. Note that the multicurrency functionality is only available in some software versions. For more information see our support note Setting up and troubleshooting multiple currencies. Setting up the required accounts[Australia only]You will need to setup a new asset account called Currency Transfer Holding. This account is setup as a local or Australian Dollar Currency account as shown in the example below. [New Zealand only]You will need to setup a new asset account called Currency Transfer Holding. This account is setup as a local or New Zealand Dollar Currency account as shown in the example below.  Image Removed
[New Zealand only]Recording the transfer- Enter a Spend Money transaction. Click the Currency button and change the Currency to the foreign currency where you are transferring funds from.
- The exchange rate needs to be changed to the exchange rate between New Zealand dollars and the currency being transferred from.
- Change the account in the top left Pay from Account field to the Foreign Currency Bank Account. This is the foreign bank account you are transferring funds from. Make the Allocation Account the Currency Transfer Holding.
- Enter the amount that you are transferring from in the foreign currency, the correct date, and record the transaction. Your accounting program 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 Account. Click Record.
- Enter a Receive Money transaction. Click the Currency button and change the Currency to the foreign currency where you are transferring funds to.
- The exchange rate needs to be changed to the exchange rate between New Zealand dollars and the currency being transferred to.
- Change the account in the top left Deposit to Account field to the Foreign Currency Bank Account you are transferring to. Make the Allocation Account the Currency Transfer Holding Account
- Enter the amount that you are transferring in the currency of the Bank Account you are transferring to. This amount is the value of your Currency Transfer Holding account. Click Record. The end effect is the Currency Transfer Holding account will be zero.
[Australia only]Recording the transferEnter a Spend Money transaction. Click the Currency button and change the Currency to | UI Text Box |
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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 |
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| title | 1. Create an asset account |
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| 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  Image Added
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| title | 2. Recording the transfer |
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| 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- Enter a Spend Money transaction (Banking > Spend Money).
- Click the Currency button and change the currency to the foreign currency where you are transferring funds from.
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The exchange rate needs to be changed to the exchange rate between Australian dollars and - Change the exchange rate to reflect the rate between your local currency and the currency being transferred from.
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Change the account in the top left - Here's our example:
 Image Added - Click OK.
- Change Pay from Account field to the Foreign Currency Bank Account. This is the foreign bank account you are transferring funds from.
- Make the Allocation Account the Currency Transfer Holding asset account created earlier.
- Enter the amount that you are transferring from in the foreign currency
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, - and ensure the correct date
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, and record the transaction. Your accounting program will - 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
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Account- asset account.
 Image Added - Click Record.
To record the Receive Money- Enter a Receive Money transaction (Banking > Receive Money).
- Click the Currency button and change the Currency to the foreign currency where you are transferring funds to.
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The exchange rate needs to be changed to the exchange rate between Australian dollars and - Change the exchange rate to reflect the rate between your local currency and the currency being transferred to.
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Change the account in the top left  Image Added- Change the Deposit to Account field to the Foreign Currency Bank Account you are transferring to.
- Make the Allocation Account the Currency Transfer Holding
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Account- asset account created earlier.
- Enter the amount that you are transferring in the currency of the Bank Account you are transferring to. This
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amount is your Currency - the Currency Transfer Holding
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account- asset account.
 Image Added - Click Record. The
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end effect is - value will be transferred and the Currency Transfer Holding asset account will be zero.
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ExampleI want to transfer USD $100.00 from my US bank account to my Euro bank account. For this example we will consider present exchange rates of: [Australia only]USD $1=EURO � 0.8333333 or EURO � 1=USD $1.20 AUD $1=EURO � 0.625 or EURO � 1=AUD $ 1.60 AUD $1=USD $ 0.75 or USD $1 =AUD $ 1.333333 [New Zealand only]USD $1=EURO � 0.8333333 or EURO � 1=USD $1.20 NZD $1=EURO � 0.625 or EURO � 1=NZD $ 1.60 NZD $1=USD $ 0.75 or USD $1 = NZD $ 1.333333 Step 1Enter a Spend Money transaction, ensuring you change the Currency to USD and enter the Transaction Exchange Rate as 1.333333. [Australia only]Image Removed [New Zealand only] Image Removed Step 2In the top left corner of the Spend Money screen, change the account to the US Bank account. Enter the amount as $US100 and select the allocation account 1-1160 Currency Transfer Holding. Image Removed [Australia only]Once this transaction is recorded, $US100 is credited from the US bank account and placed in the Currency Holding Account, this account will show a balance of $133.33. This is the value of the US dollars after it has been converted to Australian dollars based on the transaction exchange rate. [New Zealand only]Once this transaction is recorded, $US100 is credited from the US bank account and placed in the Currency Holding Account, this account will show a balance of $133.33. This is the value of the US dollars after it has been converted to New Zealand dollars based on the transaction exchange rate. Step 3Record a Receive Money transaction, ensuring you change the Currency to Euros and the Transaction Exchange Rate to 1.6. See our example below. [Australia only]Image Removed [New Zealand only] Image Removed Change the account in the top left corner to the Euro Bank Account, and enter the amount that is stored in the Currency Transfer Holding account. To calculate the amount of Euros to be deposited, use the following calculations; [Australia only]� 1=AUD $1.6 ?� =AUD $133.33 AUD $133.33 / 1.6=� 83.33 [New Zealand only]� 1=NZD $1.6 ?� =NZD $133.33 NZD $133.33 / 1.6=� 83.33 Once this Spend Money Transaction has been recorded, it should leave the Currency Transfer Holding account with a zero balance. | UI Text Box |
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| If you have a few cents balance in Currency Transfer Holding asset account, |
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a General Journal entry can be done, allocated to this is due to exchange rate variances. You can record a journal entry to allocate this value to the Currency Gain/Loss Account |
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as this difference can be caused due to rounding in different exchange rates.Image Removed | 
