The system should allow automated currency conversion in the General ledger in the following cases:

1. Profit and loss carried forward: In the year-end close, any foreign currency balances from the P&L are carried forward as foreign currency entries to the equity. However, equity is hardly recognised in foreign curreny! So a foreign currency conversion to the accounting currency is required, at least as an option in the year-end closing process.

2. Bridging accounts: In case of a bridging account, for example if payments are done in USD and the offset is posted in EUR, there should be the possibility to convert the currency to the accounting curreny. Otherwise the amounts in each curreny are cumulated up and incredibly high opening amounts are forwarded to the new business year.