what is the interest in using currency balance on account?

Hi, 

Currency balance is very helpful especially when we consider a cash account.  In other systems the only solution would be to have different GL accounts for cash USD, Cash GBP, Cash EUR etc.  Multiple GL accounts allow for balancing in different currencies.  

IFS with currency balance is easier. We only need 1 GL account and the currency balance code part would then contain the balance in the various currencies and allow transactions / payments in those currencies.  

For example assume account CASH, the balance in the accounting currency is 1000. But we may also have MXN, EUR, USD and other that total the 1000 in EUR for example.  

Cash, notes payable, loans payable, and other are very common accounts where a balance in “other” currencies are important. 

Currency Balance option also allows currency revaluation functionality,  

See the below example - 

As you can see I have a SEK balance of 100  in my accounting currency meaning I have 1000 SEK in a bank account and we can see that value .  My exchange rate was simply 1/10 and did not change over time. . 

From a GL perspective (based on the accounting currency) I have 83,635.07 as a balance.in accounting currency where the detail is in CAD, SEK, and USD.  

From the above, if I transact cash in SEK for example -10 SEK, both SEK and accounting currency would be reduced.  CAD and USD balances would not be affected. 

Best regards, 

Thomas