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| Enabled for | Public preview | General availability |
|---|---|---|
| Users, automatically | - | 
Oct 1, 2024 |
Business value
Czech legislation now lets Czech companies choose a functional currency and record their accounting in a currency other than the Czech currency. You can use a foreign currency for corporate accounting. You can also use the Additional Currency Reporting functionality for other records and reports that must use the Czech currency.
Feature details
The amendment to Act No. 563/1991 Coll., on Accounting, effective January 1, 2024, introduces the concept of functional currency as the currency of accounting. Functional currency is the currency of the primary economic environment where the entity operates. This currency might be different from the Czech currency. You can determine an entity's functional currency by using the criteria for functional currency under IFRS, as governed by European Union law.
If a company chooses to use a foreign currency for accounting, it must use the Additional Reporting Currencies functionality for reporting in Czech currency for other records and reports. This functionality supports the creation of material items and VAT items but doesn't support subsequent reporting. All VAT reporting must use Czech currency (CZK). To support this requirement, the reporting functionalities include:
- Preview of the VAT statement
- VAT control report
- VAT control report statistics
- VIES Declaration
- Export of the VAT statement
- Export of VAT control report
- Export of the VIES Declaration
- Printing the VAT statement (Report 11769)
- Printing of the Recording Obligation (Basis for VAT) and List of Tax Documents (Report 11756)
- Test report of the VAT Control Report (Report 31103)
- Test report of the VIES Declaration (Report 31064)
To adjust the currency rate, add new VAT rate to extra reporting currency (Document Currency/Extra Reporting Currency) fields in the purchase and sales documents. Add this functionality to purchase and sales advances. Modify the printing of document reports.
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