@@ -57,33 +57,37 @@ that the detail of what actually happened is never recorded in the books.
The suggested way of solving this problem is to take the amount of EUR that
was fixated at a specific USD conversion rate at the time of accrual, and
then consider it to be "sold" at whatever the available exchange rate that
occurs. (Again, Conservancy solves this with Ledger-CLI and
[a mix of the fixed lot prices and fixated cost feature](http://www.ledger-cli.org/3.0/doc/ledger3.html#Fixing-Lot-Prices)).
### Simplicity In Functional Currency
If an non-profit organization has a single functional currency, then most
aspects of the system, such as [[reporting|GeneratingReports]], can (and, in
fact, should) be done only in the functional currency.
---
## A "Multi-Native Currency" Organization
Multi-currency support is more complicated if an organization considers more
than one currency to be its native currency, which means that
[[reports|GeneratingReports]] must handle multiple currency.
FIXME: It would be useful if someone who has run an organization that has
more than one functional currency could describe the use cases on this issue.
## Choosing an Exchange Rate
Regarding exchange rates, the
[USA IRS has no official policy on exchange rates](http://www.irs.gov/Individuals/International-Taxpayers/Yearly-Average-Currency-Exchange-Rates),
stating:
> The Internal Revenue Service has no official exchange rate. Generally, it
> accepts any posted exchange rate that is used consistently.
> When valuing currency of a foreign country that uses multiple exchange
> rates, use the rate that applies to your specific facts and circumstances.
> For example, if you have a single transaction such as the sale of a
> business that occurred on a single day, use the exchange rate for that day.