Captools/net Documentation

Multi-currency

Multi-currency

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Multi-currency

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Foreign Cash Accounting (Level 3/higher+Multi-currency only)

 

When the "Foreign Cash Accounting" option is selected for an account which contains multi-currency transactions, all transactions which absorb cash or generate cash are either debited (absorb cash) or credited (generate cash) to the currency in which the traded security is denominated.  This presents a bit of a problem when the security being traded is the foreign currency itself.  E.g. if you have a US$ base account, and you want to buy Japanese Yen (JP¥), you cannot use the "BUY" transaction and have US$ debited since the transaction symbol JP¥ is itself a currency.  Captools/net accordingly has defined two transaction codes to allow purchase and sale of a foreign currency under Captools/net Foreign Cash Accounting rules as follows:

 

BFC - Buy Foreign Currency:  This transaction code moves money out of the account's base currency into the currency designated by the transaction symbol:

 

tac_BFC_example

 

SLC - Sell Foreign Currency:  This transaction code moves money out of the currency designated by the transaction symbol and into the account's base currency:

 

tac_SFC_example