Ideas for the Mambu Banking Engine

"Accounting" FX rate used for conversion of transactions value from the currency client's account is denominated in to the instance base currency

What: A possibility to define an Accounting FX rate that would be used to convert transactions posted to clients' accounts denominated in other currency than the instance base currency - to their value reflected in the base currency for accounting reporting purposes (i.e. BS, TB or PnL generation). Typically, a daily FX rate would be used for this purpose.

Therefore, for reporting purposes in the JEs level, the following information should be available:

  • original amount of the transaction in the currency the client account is denominated in

  • original amounts of the debit and credit posted in the currency the client account is denominated in

  • the amount of the transaction in the instance base currency, i.e. after conversion using the "Accounting FX rate"

  • the "Accounting FX rate" used for the conversion

Why: Accounting financial statements always need to be generated in the currency of the country where a given organisation is registered. Therefore, all debits and credits need to be reflected both in the original currency of the account (i.e. in the GL account denominated in the currency of a deposit/ loan account), as well as in the organisation's base currency.

This will reflect the transactions historical value as of the Value/ Entry Date in the organisation's base currency.

  • Dorota Nosal
  • Jul 16 2019
  • Attach files