Exchange Rates Variances Nominal

To use multi-currency, you need to set up an Exchange Rates Variances nominal. Exchange rates will affect your profit and loss.

Add Nominals

Add a Financial Costs Heading

A financial costs heading is used to account for costs incurred from financial institutions, or through completing transactions. Examples include:

• Bank charges
• Bank interest
• Hire purchase interest
• Leasing costs
• Exchange rate variance.

If you already have similar nominals under a heading, which has a different name, you could consider using this heading instead. If in doubt, consult your accountant or financial director, as to which heading to use.

1. From the Nominal menu, click Nominal Ledger.
2. Click the Tree View tab or the List tab. This is a display option – the functionality is the same.
3. Click Overheads (a type H line). The line will be highlighted.
4. In the toolbar, click Add Nominal, or right-click the heading and click Add Nominal in the context menu. The Nominal window will open.
5. The Heading list contains Overheads. Complete the following boxes:
   • Code – the nominal code should follow the format 7Y, where:
     • 7 – Overheads
     • Y – a number for the heading (often 4)
   • ? – the nominal type:
     • H – Heading
   • Descr – Financial Costs.
   • Notes – optional notes.
   • Allowed Trader types –
   • Analysis – 2
   • Unused – clear
   • Summary Report – clear
   • Swap Sign – clear
6. Click OK. The nominal heading appears in the tree or list view.

Add an Exchange Rates Variances nominal

Next add the Exchange Rates Variances nominal account below the Financial Costs heading. This can be done from the Tree View or the List.

1. From the Nominal menu, click Nominal Ledger.
2. Click the Tree View tab or the List tab. This is a display option – the functionality is the same.
3. Click Financial Costs or the equivalent heading (a type H line). The line will be highlighted.
4. In the toolbar, click Add Nominal, or right-click the heading and click Add Nominal in the context menu. The Nominal window will open.
5. The Heading list contains Financial Costs. Complete the following boxes:
   • Code – the nominal code should follow the format 7YZZ, where:
     • 7 – Overheads
     • Y – Financial Costs (often 4)
     • Z – a unique two digit number to complete the four digit code (often 50)
   • ? – the nominal type:
     • A – Profit and Loss
   • Descr – Exchange rate variances.
   • Notes – optional notes.
   • Allowed Trader types –
   • Analysis – 2
   • Unused – cleared
   • Summary Report – cleared
   • Swap Sign – cleared
6. Click OK. Log out of Horizon and log back in again, so your Exchange Rates Variances nominal can be used.

See Also