#NAVUGsummit INT10 Managing Your Multi-Currency Payables and Receivables

#NAVUGsummit Your Presenter Amanda Mayer Global Finance Controller – Corporate, Ellsworth Corporation 2

#NAVUGsummit Agenda Enter and track vendors and customers easily with currencies. System generated exchange gains and losses (no manual calculations required. Change a particular order on the fly for new currency requirement. 3

#NAVUGsummit Content Setup General Ledger Currencies Customers / Vendors Purchasing Creating a PO Receiving against the PO Vouchering the Invoice Revaluation of outstanding invoices – GL to Sub-ledger reconciliation. Payment of the Invoice – recognition of exchange. 4

#NAVUGsummit 5 S ETUP

#NAVUGsummit 6 Home currency = blank Setup LCY code – USD Appln. Rounding Precision = amount up to which exchange / gain or loss will be recorded. General Ledger Setup

#NAVUGsummit 7 Currency Table \ Card Unrealized Gain / Loss –revaluation entries post to these accounts Realized Gain / Loss – final settlement of foreign currency transactions post here

#NAVUGsummit 8 Base currency (USD) is Foreign currency (EUR) is * current exchange rate (i.e. 100*1.2632) Using 100 instead of 1 increases the accuracy of FX calculation Exchange Rate Table

#NAVUGsummit 9 Setup is the same Appln. Between Currencies = All Allows system to automatically record exchange gain / loss Payables \ Receivables Setup Fields

#NAVUGsummit 10 Setup is the same Foreign Trade tab = Currency Code Can also be setup on an individual invoice \ sales order if not always the same currency. Vendor \ Customer

#NAVUGsummit Things to Remember PO \ SO issued in a foreign currency (i.e. EUR) Receipts \ Shipping done against a foreign currency PO \ SO Invoice MUST be in foreign currency If using “Get Receipt Lines” (PO) – cannot change once the lines have been received against. If posting directly from a foreign currency PO, a foreign currency invoice will be created. 11

#NAVUGsummit E NTERING A PURCHASE ORDER 12

#NAVUGsummit 13 Entering a Purchase Order 1,000 (EUR)* = $1,263.20

#NAVUGsummit 14 Receiving Inventory Item posts to the G\L at Standard Cost Expected Cost Posting to G/L must be checked in Inventory Setup

#NAVUGsummit 15 Currency Calculation on PO Amt. Rcd. Not Invoiced per item is $1, (1,000 EUR * )

#NAVUGsummit 16 Processing the Invoice

#NAVUGsummit 17 General Ledger Entries Payable to vendor is $1,300 per item ($2,600/2) is 1,000 EUR * 1.30

#NAVUGsummit 18 Aged Accounts Payable – Next Month G\L is equal to last posted amount (from invoice). Aging is equal to 1,000 * * 2

#NAVUGsummit 19 Updating the GL to Match the Aged Payables

#NAVUGsummit 20 Unrealized Gains \ Losses Accounts Payable and Unrealized Gain \ Loss is updated for the difference between the original exchange rate and the exchange rate at month end (1.30 – ) * 1,000 * 2 = $37.54

#NAVUGsummit 21 Payment to Vendor Payment to EUR vendor against a USD Bank Account (tolerance set to $10) Last exchange rate in the system is but bank rate is

#NAVUGsummit 22 Realized Gains \ Loss Unrealized gains / losses are moved at payment time to realized gains / losses. The application rounding of $7.46 is posted to an account of your choice. This is setup in a separate account, but it is common to also post to exchange gain / loss.

#NAVUGsummit 23 D EMO

#NAVUGsummit Q UESTIONS TO A SK 24

#NAVUGsummit Questions to Ask How often do we need or want to update currency rates? What type of transactional activity is there? How accurate do we need or want to be? What is our tolerance for rounding on currency applications? 25

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