Currency, tax, inventory and closing dates

Understand the settings that affect how amounts are recorded in the books.

Needs: Pro · Accounting

These settings change the accounting entries produced by invoices, payments and purchases. Agree on the intended treatment with the person maintaining the books, then verify a representative transaction after making a change.

Currency conversion

Accounting uses a home currency and saved exchange rates. Invoices use the rate for the issue date, while settlements use the payment-date rate. A difference can be posted as an exchange gain or loss to account 810 in the reviewed chart.

If the home-currency amount is unexpected, check the source currency, dates and rates. Correct the relevant configuration or source rather than adding an unexplained balancing amount.

Purchase tax and inventory

Purchase tax can be recorded as recoverable through account 230 or included in cost, depending on the setting. Review that choice separately from sales-tax configuration.

With inventory accounting enabled, eligible purchases debit inventory and invoice activity can recognize cost of goods sold using recorded costs. Reports depend on the product quantities and cost information being complete, so check the asset records as well as the ledger when valuation looks wrong.

Close a period

The closing date blocks applicable Accounting entries dated on or before the selected date. However, changes originating in CRM can still post, with a warning. The setting is therefore not an immutable lock across every module.

Before closing, reconcile the bank accounts, review receivables and payables, check late source changes and produce the required reports. Make sure staff who can edit CRM invoices or payments understand how corrections to an already reviewed period should be handled.

Keep a record of the setup

Document the fiscal start, home currency, deposit mappings, tax treatment and inventory policy. When changing one, follow a small example from its source record through the journal to the report so you can explain the result.