Using Currencies

Before you can start using the system, you must choose a base currency i.e. USD for your General Ledger.

You can set up multiple currencies and their exchange rates relative to your base currency. For example $1 USD = $1.41 CAD.

When you create a new Customer or Supplier master, you must select a trading currency from the List of currencies you’ve preset.

New trading partner masters will default to the base currency if you omit to select a currency. You cannot change currency on a Trading Partner master.

If you accidentally set the wrong currency on a master, you should delete the master and start over. If you create new Documents from this master, they too will need to be deleted and re-entered.

Documents created directly from their respective Customer or Supplier masters will inherit their currency and exchange rate from parent master.

Documents created from other Documents will by default inherit the system exchange rate. The rates on all Documents are editable.

You can configure Cash Sales and Sales Invoices to inherit the rate specified on the original Sales Order ( Refer section 11).

The Multi-Currency function enables you to:

  1. Setup any base or trading currency, set foreign exchange (FX) rates.
  2. Setup foreign currency bank accounts to track FX deposits and transactions.
  3. Trade with Customers and Suppliers in multiple currencies.
  4. Track accounts receivable and payable balances per currency.
  5. Track cash that is and is not deposited into bank accounts.
  6. Make currency adjustments for gains and losses resulting from currency exchange rate fluctuations.
  7. Fix Item pricing and costs in foreign currencies.
  8. Report on base vs fx on sales and purchase-related transactions.
  9. Report on specific currency transactions.
  10. Edit Document Exchange Rates.
  11. Force Sales Order rate to be inherited by Cash Sales and Sales Invoices.

1. Add a new currency, set exchange rate


To add a new currency and set up the exchange rate, got to: ACCOUNTING > Multi-Currency > Currencies > +

Set the new Currency Selection.

Set Exchange Rate for the new currency.

For example, 0.79 GBP is 1 USD, where USD is your base currency and GBP is the new currency.

2. Setup foreign currency bank accounts

You can create Bank Accounts to hold a foreign currency: BANKING > Bank Accounts > + Set the Currency field in Account Details section. You’ll need to set up the currency first before it will appear in the currency field drop down. Refer section 1.

3. Setup multi-currency customers and suppliers

To trade with a customer or supplier in a currency different to your base currency, go to:
  • SALES > Customers > + > New Customer > set Currency field.
  • PURCHASING > Suppliers > + > New Supplier > set Currency field.
NOTE: You need to set up the currency first before it will appear in the currency field drop down. Refer section 1.

4. Track multi-currency AR and AP

When you create a new currency (Refer section 1) the system automatically creates four new accounts in the general ledger (Chart of Accounts). These are:

  1. Non deposited funds (Current Asset)
  2. Accounts Receivable (Current Asset)
  3. Accounts Payable (Current Liability)
  4. Opening Balances (Equity)

5. Track pending cash deposits

When a currency is created, the system automatically creates a new account Non-Deposited funds in the respective currency.

This is a default account for incoming payments.

6. Currency adjustments for gains and losses

As currencies fluctuate relative to your base currency you’ll need to make currency adjustments to record the gains and losses. A Currency Adjustment revalues transactions posted to sales, purchasing and bank accounts.

Gains and Losses are recorded in the Currency Gains/Losses account in the Other Income and Other Expense part of the Profit and Loss.

Except for the base currency, you’ll need to make a currency adjustment for each currency in use.


To make a currency adjustment, go to:

ACCOUNTING > Multi- Currency > Currency Adjustments > +

Choose currency of accounts to adjust – the currency to adjust.

Enter the exchange rate – the value of the rate vs your base currency.

Click Proceed.

The system will display a list of accounts, their respective current balances, gains, and losses and what will be the new balance, after the currency adjustment.

Now set the Date, add a memo to the accounts A/C Memo then select the accounts you want to adjust.

As you select each account, the system will sum the balances of the adjustments and display the Total adjustment. Click Save.

The Currency adjustment will be added to the List, and the Gains and Losses accounts will be updated.

7. Set Item pricing and costs in foreign currencies

When trading with Suppliers and Customers, Currency fluctuations affect your costs and pricing on posting and non-posting transactions. This is because the exchange rate on each transaction is inherited from the parent Customer or Supplier.

This inherited value will affect the transformation of a unit cost or a price derived from the respective Item values in your base currency. This multiplication can result in a number that can confuse customers and users and frustrate the sales or payments collection process.

On each Item master, they are on the Sales and Purchasing tabs, Foreign price and Foreign cost fields. Use these to fix the price or cost in the selected currency. This foreign price or cost will be used on transactions with the same currency setting.


8. Report on Base vs FX on sales and purchases


On standard reports, you can set the following currency columns to display:

  • Currency
  • X Rate
  • Debit FX
  • Credit FX

9. Report on specific currency transactions

On standard reports and where it is relevant (e.g. Sales by Item), you can set the Currency filter to display a report for transactions in the selected currency.

To set the currency filter,  select a report (e.g. Sales by Item), go to:

Customise > Filters tab > Currency section

Set currency in the drop down field.

Check Report in selected currency.

Click Run Report.

10. Edit Document exchange rate

New Documents will always inherit the system exchange rate set at the time. You can edit this rate on all Documents.

11. Inherit exchange rate from Sales Order Document

If you need to have Cash Sales or Invoices not take their rate from the system, but inherit the rate specified on the original Sales Order document, you can preset this behavior.

To configure this option, go to:

SALES > Sales Orders > Select a Sales Order document > Configure > Creating Invoices/Cash Sale section > 

 Set Do not inherit xrate option.

In this article

Was this helpful?