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  • Writer's pictureEH Lim

The Fixed Assets

When purchasing an asset in foreign currency, you need not convert manually into a home currency value before recording it into the MoneyWorks accounting software.

The currency type of the Bank, Accounts Receivable and Accounts Payable account can be in foreign currency. Therefore, when you record a purchase invoice with a supplier that has a foreign currency set as a transaction currency, MoneyWorks will convert to a home currency value based on the exchange rate set.

For example, you purchase a machine at US$60,000. You record the purchase invoice into MoneyWorks at an exchange of 1 Singapore dollar to 0.74 US dollar. The double entry will be:

Debit Machinery 60,000.00 Debit Machinery 21,081.08 Debit GST Input 5,675.68

Credit USD Accounts Payable 64,200.00 Credit USD Accounts Payable ~~ Del 22,556.76

S$81,081.08, the Machinery cost, will print on the Balance Sheet report. The USD Accounts Payable will follow the rule of the exchange gain/loss, whereas the fixed asset will maintain in home currency.

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