I have a multi currency scenario here and I wonder how to set my CoA in the best way.
mainly it’s about expense accounts. The majority of suppliers we are buying from bills and get’s paid in a different currency then my companies default currency. As an example let’s say I have an Expenses > Direct Sales Costs > Materials for manufacturing and I wonder whether I should set this in
A) the main company currency … or
B) one account for each currency that is being used
an example
A) all Material expenses are recorded in one currency (the companies main currency or maybe even the currency the majority of suppliers is being paid in (which is differnent then the main currency), regardless of the actual payment/bill currency
… Expenses / Direct Sales Costs / Materials ($)
vs
B) Material expenses are recorded in a dedicated expense account per currency
… Expenses / Direct Sales Costs / Materials ($)
… Expenses / Direct Sales Costs / Materials (EUR)
scenario B) might result in up to 3 different Expense Accounts for some which seems a little like an overkill…
Does anybody have a similar situation and might want to share some best practices? My goal is to avoid having too many accounts with being able to be as clear as possible (I guess that’s anybodies goal more or less) at the same time.
For example I’d want to be able to find a payment by the payment amount in the currency I paid in (would that be possible whether the related expense account is in a different currency [and the actual amount on the expense account is different due to the exchange it went though])?