What Multi-Currency Accounting Does
Foreign-currency transactions can create exchange differences and GST reporting obligations that must stay accurate in the ledger. AI Account is multi-currency accounting software that keeps foreign-currency transactions in one ledger and calculates exchange gains and losses for you. This page explains how the multi-currency workflow records rates, differences and GST amounts.
It covers:
- Home currency setup and Settings controls
- Live market rates or rates you set yourself
- Currency selection for sales, expenses and manual journals
- Realised and unrealised exchange gains and losses
- Included in all AI Account plans
Why Foreign Currency Accounting Matters for GST
According to the Inland Revenue Authority of Singapore (IRAS), a GST-registered business that sells in foreign currency must convert the amounts to Singapore dollars for GST reporting. The conversion uses an exchange rate from an approved source that is updated at least once every three months.
That requirement makes manual conversion risky. A missed rate update or a mistyped figure becomes a GST error. When your accounting system holds the currency, the rate and the converted amount together, foreign currency accounting stops being a compliance headache and becomes routine bookkeeping.
How AI Account Handles Foreign-Currency Transactions
AI Account keeps foreign-currency entries in the same ledger as your home-currency books.
You pick the currency on sales, expenses and manual journals. Individual accounts can be set to a currency. The General Ledger shows an Original Currency column and filters by currency code. Set the home currency once, then record entries in each currency you trade in without keeping a second set of books. This multi-currency workflow sits inside the core accounting software, so the same ledger also feeds banking and cash records and year-end consolidation.
1. Set the Home Currency and Your Currencies
The home currency is set when the company is created. It cannot be changed later, so choose it with care at the start. You can add or hide currencies in Settings at any time, keeping the list to the currencies you actually trade in. Confirm the choice during setup, because it affects every later report. AI Account keeps this setting at company level, so every user works from the same base currency.
2. Retrieve Live Rates or Set Your Own
AI Account retrieves live market exchange rates automatically, so day-to-day entry needs no manual rate lookup. Where you prefer a fixed rate for a period, you can set your own rate for any period and post entries against it.
3. Realised FX Gain and Loss, Calculated Automatically
A realised exchange gain or loss arises when the rate on the invoice differs from the rate on the payment. AI Account calculates it automatically when the payment is recorded, so the difference lands in your ledger without a manual journal. The Banking & Cash module records the incoming and outgoing payments that trigger it.
4. Forex Revaluation at Period End
The Forex Revaluation module measures unrealised gain or loss at period end, either by account balance or per invoice. The revaluation can be reversed in the next period. This keeps period-end balances aligned with the rates in your core accounting records before you close the books.
5. Import Transactions and Keep GST in SGD
Foreign-currency transactions can be imported with a currency code and rate. When the home currency is not SGD, the GST currency display lets you record the SGD amount on each entry. That way GST can be reported in Singapore dollars.
Manual Foreign-Currency Accounting vs AI Account
| Task | Manual approach | With AI Account |
|---|---|---|
| Rate entry | Look up and key in a rate for every transaction | Live market rates retrieved automatically, or your own rate for any period |
| Realised gain or loss | Spreadsheet comparison of invoice and payment rates | Calculated automatically when the two rates differ |
| Period-end revaluation | Manual journal for unrealised differences | Forex Revaluation by account balance or per invoice, reversible next period |
| Ledger review | Separate schedules kept per currency | Original Currency column with a currency-code filter |
| Bulk data entry | Re-keying foreign-currency rows | Import with a currency code and rate |
| GST conversion | Manual conversion to Singapore dollars | GST currency display records the SGD amount on each entry |
From Foreign Currency to the Financial Statements
Exchange gains and losses flow into the ledger like any other transaction, so they reach your reporting without reformatting. When you generate financial statements, multi-currency balances are already part of the core accounting record rather than an offline schedule. AI Account generates financial statements from the same ledger, so their figures match your books.
For groups, multi-currency results carry into consolidation and year-end closing, keeping one continuous trail from a foreign-currency invoice to the final statements.
Run Every Currency in One Ledger
Foreign currency should not be the part of the books you dread. Set the home currency once, retrieve live rates automatically and calculate realised and unrealised exchange differences in the same ledger.
Start your 30-day free trial. AI Account records the settlement and realised exchange gain or loss automatically when invoice and payment rates differ.
Run Every Currency in One Ledger
Foreign-currency sales, expenses and payments, with exchange gains and losses handled for you.
