Accounting Books
Zenvio keeps all your transactions bookkeeped in an Accounting Book or a Ledger.
Each account has a single accounting book created by default. Additional accounting books (up to 3) can also be created. Zenvio stores all your transactions posted in these accounting books simultaneously and in parallel.
Adding additional book does not trigger posting of existing transaction. It is recommended to choose book count prior to start bookkeeping.
Accounting book has individual configuration like currency, exchange rate and many other.
Currency
All transactions are recorded in this currency. It cannot be changed once the accounting book is created. The default book is created with the account's default currency. Additional books may have the same or different currency. Here is an explanatory sample:
| Book | Currency | Description |
|---|---|---|
| Primary (default) | USD | primary, local specific book, in USD |
| IFRS | EUR | Holding IFRS in EUR |
Precision
All transactions are rounded to this precision. Default value: 2. Each accounting book can have different precission.
Exchange Rates
Each transaction is posted in a currency of particular book. This involves Exchange Rate calculation. Transaction can have the exchange rate pre-defined automatically from one of Exchange Rates Sources. You may always update the exchange rate manually when needed.
Exchange Rate Sources
| Exchange Rate Source | Description |
|---|---|
| European Central Bank | ECB.europa.eu - default source for EUR |
| Česká národní banka | CNB.cz default source for CZK |
Exchange Rate Date
Exchange rate can be selected for one of the following dates
| Exchange Rate Date |
|---|
| current day |
| first day of the current month |
| last day of the previous month |
| last day of the previous month |
| previous day |
Posting configuration
Following options can be configured to adjust posting result
Group rows
If turned on (checked) all rows in transaction will be grouped by GL Account into single entry per GL Account. This setting reduces number of resulting entries. Example:
Invoice with 3 lines with same GL Account
| Item | GL Account | Debit | Credit |
|---|---|---|---|
| Accounts Receivable | $270 | 0 | |
| Black Hoodie | Revenues | 0 | $99 |
| Shoes Size 8 | Revenues | 0 | $129 |
| Leather Belt | Revenues | 0 | $12 |
| Taxes | 0 | $30 |
Will be posted as
| Row | GL Account | Debit | Credit |
|---|---|---|---|
| Accounts Receivable | $270 | 0 | |
| Black Hoodie, Shoes Size 8, Leather Belt | Revenues | 0 | $240 |
| Taxes | 0 | $30 |
Group Taxes
Similair to Group Rows but applies to taxes. When turned on (checked) all tax rows in transaction will be grouped by GL Account and Tax Rate into single entry per combination of GL Account and Tax Rate. This setting reduces number of resulting entries. Example:
Allow zero entries
If turned on (checked) transactions with no impact (zero, null, 0) will be omitted from posting. Default configuration is turned on.
Split tax reverse charge
When Tax Row is marked as Reverse Charge, and this setting is turned on (checked), posting will be splitted into two posting entries - first entry with GL Account Tax In and second entry with GL Account Tax Out
Calculate exchange rate variances
An AR/AP transaction in currency other than currency of the book will most likely be paid (or payment processed) on different date. Therefore the Exchange Rate used for transaction posting and payment posting may be different. This results in small discrepancies in bookkeeping. See example
| Transaction | GL Account | Original Amount | Posting Amount | Date | Exchange Rate |
|---|---|---|---|---|---|
| Invoice | Account Receivables | 240 USD | 216.81 EUR | Oct 1st 2024 | 0.9034 |
| Payment | Account Receivables | 240 USD | -220.20 EUR | Oct 3st 2024 | 0.9175 |
Invoice has been paid by the customer, however balance of Account Receivables in EUR displays overpaid 3.39 EUR (220.20 - 216.81)
When enabled (checked), Zenvio creates internal transaction that balances this case:
| Transaction | GL Account | Original Amount | Posting Amount | Date | Exchange Rate |
|---|---|---|---|---|---|
| Invoice | Account Receivables | 240 USD | 216.81 EUR | Oct 1st 2024 | 0.9034 |
| Payment | Account Receivables | 240 USD | -220.20 EUR | Oct 3st 2024 | 0.9175 |
| Exchange Rate Variance | Account Receivables | 0 USD | 3.39 EUR |