Setup Currencies

Overview

The Multicurrency 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

Key points

  • 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)

In this article

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