Foreign Currency Balance and the Balance column on the Chart of Accounts

Chart of Accounts is viewed on Account Balance basis wherein Foreign Currency Balance column is the cumulative amount of the Amount (Foreign Currency) of individual transaction’s increase and decrease in the account meanwhile Balance column is the cumulative amount of the Base Currency Balance of the individual transactions which is derived by multiplying Amount (Foreign Currency) with Historical Exchange Rate used per Transaction.
 
Since Amount Balance is cumulative, it is the sum of all historical transactions converted on their transaction date.
 
You may verify that the behavior is correct by creating a saved search with the following setup:

1. Navigate to Reports > Saved Searches > All Saved Searches > New
2. Click Transaction
3. Under the Criteria subtab, add filters:

• Account = The specific Bank account you are looking at in the chart of accounts
• Posting = Yes

1. Under the Results subtab, click remove all and add the following fields:

• Amount (Foreign Currency)
• Exchange Rate
• Date
• Formula (Currency)
  • Under Formula; Add this formula —> {fxamount}*{exchangerate}

1. Enable the Show Totals checkbox
2. Click Preview/ Save & Run