Tag Archives: MoneyWorks multicurrency

Setup multiple currency in MoneyWorks accounting software

Software: MoneyWorks accounting software

Before you turn on the multiple currency feature in MoneyWorks, you should BACKUP the company file. You cannot change or remove the multiple currency once it has turned on.

To turn on the multiple currency feature, go to the Edit menu | Document Preferences | Locale/Currency tab

Assume your base currency is Singapore Dollar.

First, you check the checkbox for “Use custom base currency format (instead of system format)” and enter ‘S$” in the Symbol field. This will prevent MoneyWorks from using the system currency format (some computer system may set “£” or other currency symbol as a default currency symbol). Next, check the checkbox for “Use multiple currencies in this document”, and select your base currency (in this case, we use SGD – Singapore Dollars).

Setup multiple currency

You need to add “Exchange Gain/Loss” account and “Exchange Gain/Loss – Unrealised” account in the Chart of accounts list. These two accounts will be tagged with the currency, which you are going to create later. For example, when you add a new USD currency (From the Show menu | Currencies) you need to add the “Exchange Gain/Loss – Unrealised” account, which you have created, into the “Unrealised Loss/Gain Account” field, and add the “Exchange Gain/Loss” account into the “Currency Loss/Gain Account” field.

Besides, you need to have a Suspend USD Bank to facilitate payment/receipts against invoices (even if you do not have a real one). For example, when you bank in the payment received from a USD currency’s customer to a SGD bank account, MoneyWorks will first post the payment received into the Suspend USD Bank account and then transfer the amount to the actual SGD bank account.

You also need to check the checkboxes for “I send invoices in this currency” and “I receive invoices in this currency”; and enter the account code into the “Accounts Receivable” and “Accounts Payable” control account field.


*Please refer to MoneyWorks v7 User Guide page G-267, Multi-Currency.



Realised exchange rate differences – the exempt supplies

Software: MoneyWorks #accounting software

A new GST Form 5, v1.0.9, was included in the MoneyWorks accounting software update (v7.1.7). The new GST Form 5 includes the realised exchange gain/loss (exempt supplies) in the Box 3 of the GST Form 5.

GST Form 5


Q: Must I report exchange gains/losses in the GST return?

A: Yes, You are required to account only realised exchange rate differences as your exempt supplies in your GST F5 return.

Assume that your base currency is in SGD (Singapore dollar). You had a USD (US dollar) invoice of US$10,000 (subject to 7% GST) at an exchange rate of 1 SGD : 0.8 USD. The SGD equivalent amount of this invoice was at S$13,375.

When payment received in the following month at an exchange rate of 1 SGD : 0.7 USD. The SGD equivalent amount of S$15,285.71 was deposited into the SGD Bank.

The exchange differences in this case is at 1,910.71 (15,285.71 – 13,375). Hence, 1,910.71 is added to the Box 3 of the GST Form 5 since realised exchange rate differences are part of the exempt supplies.



Daily exchange rate or monthly exchange rate?

Software: MoneyWorks accounting software

Which exchange rate should I be using? Daily exchange rate or monthly exchange rate?

From the IRAS e-tax Guide “GST: Exchange Rates for GST Purpose”, which was published on 30 September 2013, stated that:

… The exchange rate must be the daily exchange rate corresponding to the time of supply. If not, it must be a good approximation of this rate;

Daily exchange rate refers to the prevailing buying rate, selling rate or average of the two. The use of the exchange rate on a particular day of the month (e.g. last working day of the previous month) or an average rate over a specific period (e.g. average of the daily rates for the previous month) to approximate the daily exchange rate corresponding to the time of supply is acceptable…

For me, I preferred to use the exchange rate of the last working day of the previous month (month end exchange rate) for my current month’s transaction. A home currency revaluation journal will be followed after the exchange rate is entered. If you are using MoneyWorks accounting software, the home currency revaluation journal is automatically created to adjust the foreign bank, accounts receivable and accounts payable account.

Highlight the currency from the Currencies list and click the “Set Rate” button to update the latest exchange rate.

MoneyWorks accounting software