The Multicurrency function enables you to:
- Setup any base or trading currency, set foreign exchange (FX) rates.
- Setup foreign currency bank accounts to track FX deposits and transactions.
- Trade with Customers and Suppliers in multiple currencies.
- Track accounts receivable and payable balances per currency.
- Track cash that is and is not deposited into bank accounts.
- Make currency adjustments for gains and losses resulting from currency exchange rate fluctuations.
- Fix Item pricing and costs in foreign currencies.
- Report on base vs fx on sales and purchase-related transactions.
- Report on specific currency transactions.
- Edit Document Exchange Rates.
- Force Sales Order rate to be inherited by Cash Sales and Sales Invoices
- 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 inherit currency and exchange rate from Customer or Supplier masters will inherit their currency and exchange rate from their parent master.
- Documents created from other Documents will by default inherit the system exchange rate. The rates on all Documents are editable.
- Cash Sales and Sales Invoices: can be configured to NOT inherit the exchange rate specified on the original Sales Order.
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.
When you create a new currency the system automatically creates four new accounts with the respective currency in the Chart of Accounts. These are:
- Non deposited funds (Current Asset)
- Accounts Receivable (Current Asset)
- Accounts Payable (Current Liability)
- Opening Balances (Equity)