Euro Account in the nominal account shows the amount 1070Euro, but in the balance sheet at the same date it shows £3,763.
It should show lower amount ( in pounds,but instead its higher than in Euro balance). I tried to create the journal through the bank settings. the journal posted to the nominal code ( In pounds) and now the balance in EUR shows -1932EUR ( negative balance) instead 1070EUR.
I read previous posts but cannot find a clue for my problem.
On 1st of February you may receive EUR 100 which at that time was booked at GBP 90. On 1st March you may then pay out EUR 100 at which point it’s booked at GBP 95 (due to rate changes). The EUR balance on the account is zero but the GBP balance is - 5, this is the currency variation.
You can adjust these balances out if you prefer. You just need to go to the bank account settings screen and select the option “Record currency loss/gain movement”.
You can then move any surplus GBP balance to the currency loss/gain code. This will not affect the foreign currency balance, only the GBP balance.