The FX calculations in the Trial Balance rely on the 'Foreign Currency' rule defined on each master nominal account code (the menu option is Master List), and the exchange rates entered into Troika.  The prevailing exchange rate used in Trial Balance is displayed when clicking the Exchange Rates button on the TB screen.  Each transaction entered into Troika also carries its own transaction exchange rate which forms part of the historic records.


Foreign Currency Rules and Trial Balance Values


This must be set to 'Closing' or 'Historic' depending on whether the account is to automatically re-value any foreign currency balances.  If set to 'Closing' the appropriate exchange rate, on or before the period end date if that date precedes the system date or the most current rate if the period end date is in advance of the system date, will be applied to any foreign currency balances in the reporting currency of the Client.  If no rate is found for a particular currency a rate of "1" will be applied.  If set to 'Historic' any foreign currency balances will report using the exchange rates applied at the time of entry.


NB Changing the FX rules (closing/historic) on the master nominal account codes will affect all clients and funds using the same account as the rules are common.


The Trial Balance screen will display the balance according to the rule set on each nominal account code, with the analysis pane at the bottom showing any gain or loss on currency balances.  For example, nominal accounts that need to be revalued at the period end will need to have their rule set to ‘closing’, and depending on the prevailing exchange rated entered at the TB end date, the balances will be calculated accordingly in the Trial Balance screen and reports.


Fund Default Codes


There are two fund default nominal codes which are used by the Troika Foreign Currency calculations:

  • Exchange Difference (unrealised)
  • Realised Exchange Difference


Exchange Difference (unrealised)


This nominal account code is used to allocate the offsetting FX ‘unrealised’ exchange balances from all the nominal account codes that are set with ‘closing rule’ and are being revalued to the closing Trial Balance exchange rate.  Once an account code is nominated, the Trial Balance will show this ‘unrealised’ balance in the client reporting currency with the currency analysis displayed in the pane below.  No transactions are actually posted into this account if the nominal details are accessed (the nominal details for this account will appear to be blank), as this is a notional calculation used to balance the TB display.


If you want to post an unrealised gain or loss, please follow the instructions here on how to do this.


Realised Exchange Difference


This nominal account is used is to post realised exchange differences for investment disposals where an element oft he profit/loss is due to movements in exchange rates, in addition to the profit/loss on average cost of the holding.  This fund default code is NOT used by the Trial Balance or the Period End function.


Period End


Transactions are posted in a defined period and at the end of this period a close off procedure ensures that the correct opening balances are brought forward to the new period.  By running the close-off routine, the balance from each nominal account code with a close-off account defined (within the menu option ‘Master List’) is cleared and automatically posted to the specified close-off account.  If no close-off account is specified the balance is brought forward into the new accounting period.


The notional exchange difference calculation balance is also brought forward into the specified close-off account in the new period as actual transaction for each currency where an unrealised FX balance was calculated.


‘Out of Balance’ message Trial Balance


The Trial Balance is automatically recalculated when transactions are posted or edited into an ‘open’ period.  In some instances where transactions amounts or exchange rates are edited in earlier periods without re-running period, the TB can become ‘out of balance’. If exchange rates are also amended or deleted, this can also cause the Trial Balance displays to be ‘out of balance’.


To correct an out of balance TB:

  • Check you have set the fund default nominal account codes in the fund details screen.
  • Click the ‘Recalculate TB’ button on the Trial Balance screen.
  • Re-run the last period that didn’t display an out of balance message; you may need to run more than period end in sequence until the balances are brought forward from one year to the next.
  • Using ‘View Transactions’ export the transactions in the period to Excel to analyse the transaction amounts and FX amount to find any discrepancies or missing amounts.


Please contact Support if you can’t resolve the difference.