Visma Net
About denominated accounts
If multi-currency support is activated (the Multi-currency accounting functionality is enabled in the Enable/disable functionalities (CS100000) window), a general ledger account may be marked as denominated. A denominated account is one
with a balance maintained in two currencies: the currency of denomination and the
base currency.
The currency of denomination is often a foreign currency, but it can
be the base currency too.
The foreign currency balance represents the actual holding
of the company, whereas the base currency balance is just its reporting
equivalent.
In comparison with ordinary accounts, denominated accounts have a few specific restrictions:
- You can enter and post to denominated accounts only journal entries in denominated currency.
- Denominated accounts cannot be used as direct or contra source accounts or destination accounts for allocations.
- You cannot mark an accounts as denominated if it has at least one journal entry in a currency other than the currency of denomination.
- Due to currency rate fluctuations, you may need to revalue balances of denominated accounts at the end of the period.
Because of these restrictions, you should denominate only accounts that absolutely
must be denominated. Generally, these are the base accounts for cash accounts.
You can always cancel the account denomination by clearing the Currency field in the Chart of accounts (GL202500) window.
Revaluation of foreign currency accountsRelated concepts
About account IDs
About foreign currency transactions
Related reference
Currency rates (CM301000)
