Multi-currency accounting needs historical rates
A reliable system stores the transaction currency, amount, exchange rate and base-currency equivalent at the time of posting. Later rate changes should not silently rewrite past transactions.
Key controls
- Configurable base currency
- Manual or approved exchange rates
- Cash and bank balances by currency
- Receivables and payables by original currency
- Exchange gain/loss treatment where required
- Currency position and management reports
For Afghan organizations operating in AFN, USD and other currencies, rate ownership and approval should be clearly assigned.