Understanding Multicurrency Presented By: Ian Richardson BA CPA CGA

Understanding Multicurrency Accounts Receivable Euro Reporting Needs Foreign Subsidiary Foreign Currency Journal Entry Accounts Pyable (USD) Accounts Payable (Remimbi) Bank Account (USD) Accounts Receivable (USD) Multi Currency

Understanding Multicurrency Accounts Receivable Euro Reporting Needs Foreign Subsidiary Foreign Currency Journal Entry Accounts Pyable (USD) Accounts Payable (Remimbi) Bank Account (USD) Accounts Receivable (USD) Multi Currency

Understanding Multicurrency Multi Currency

Understanding Multicurrency Agenda SetupTransactions Inquiry / Balancing RevaluationReporting

Understanding Multicurrency Currency creation Z-XX come with GP Set currency symbol Seperators GL accounts (if you want different accounts per currency) Setup System

Understanding Multicurrency Exchange Table Rate Frequency; how often will you set the exchange rate Days to Expire Only available on Miscellaneous Frequency None will not set an expiration date Setup System

Understanding Multicurrency Exchange Table Set multiply or divide Set default Exact or look forwards or backwards Rate Variance Setup System

Understanding Multicurrency The default expiration date will be calculated based on the frequency you selected for the exchange rate table ID in the Multicurrency Exchange Rate Table Setup window. If None is the frequency for expiration, an expiration date will not be displayed when rates are added to the exchange rate table. Setup System

Understanding Multicurrency Multicurrency Access For both the currency and the exchange rate Setup System

Understanding Multicurrency Multicurrency Set Functional Currency Set Reporting Currency These likely will be the same but they can be different Add Rate types if you wish Default Transaction Rate Types Not marked as required fields but are. Allow Rates to be used without adding to the rate table? Currency Translation Used by Management Reporter Setup Financial

Understanding Multicurrency Rate Types Tie the exchange table with the rate type selected in the Multicurrency setup window Setup Financial

Understanding Multicurrency Account Currencies Mark that an account can use the foreign currencies Identify accounts that should revalue, and how Set translation type for reporting Setup Cards

Understanding Multicurrency Currency Account Update Quickly set account currency information for ranges of accounts Setup Cards

Understanding Multicurrency Allow batch edit listings and posting journals to show multicurrency information by checking the box in posting set up Setup Posting

Understanding Multicurrency Demo 1 Setup

Understanding Multicurrency The system will use the document date / transaction date to determine the exchange rate to use You can choose to enter a different rate if you wish Transactions

Understanding Multicurrency If you choose to change the rate and have marked to allow to use rates without adding to the table you can choose continue to not add the rate Transactions

Understanding Multicurrency Override the rate on a bank transfer to use the rate of your foreign currency purchase or sale Transactions

Understanding Multicurrency Subledger transactions display in originating currencies SOP and POP can switch Transactions

Understanding Multicurrency Distributions for these show both functional and originating currency Transactions

Understanding Multicurrency For journal entries use the view menu to see transactions in their originating currency. Transactions

Understanding Multicurrency This is particularly important in journal entries as if you leave the view as functional and change the currency to USD you are making a journal entry for the Canadian equivalent of Transactions

Understanding Multicurrency Notice that the dollar amounts are still denominated as C$ (from currency setup) Transactions

Understanding Multicurrency Changing the view we get the actual US entry that was entered Transactions

Understanding Multicurrency Demo 2 Journal Entry

Understanding Multicurrency The exchange rate has likely changed between when a transaction was originally entered and when it gets paid Transactions

Understanding Multicurrency The system will automatically calculate the gain loss difference Transactions

Understanding Multicurrency Demo 3 Apply Docs

Understanding Multicurrency Change the view to originating to see foreign currency transactions in their original currency Inquiry Balancing

Understanding Multicurrency GL summary inquiry is in functional currency It cannot be changed to originating Instead click the currency button Preselecting a month will open that particular month Inquiry Balancing

Understanding Multicurrency Select the period and then amounts radio button Period balance will show the ending balance for the period in the originating currency Inquiry Balancing

Understanding Multicurrency If you are looking at an account that should ONLY have foreign currency transactions in it there should be no balance in the total functional currency field Inquiry Balancing

Understanding Multicurrency Revaluations will not generate the correct equivalent ending balance until these functional currency transactions are removed Inquiry Balancing

Understanding Multicurrency Keep in mind a bank reconciliation is not balanced until it has also been compared to the GL In this case the USD bank rec will need to balance to $75 USD Inquiry Balancing

Understanding Multicurrency Demo 4 Inquiry

Understanding Multicurrency Revaluation can be done at both the general ledger and the subledger level Revalution

Understanding Multicurrency Enter a document cut off to ensure that you are not revaluing transactions in the next period Revaluation of Subledger

Understanding Multicurrency Be aware that revaluation may not occur if transactions have apply records; even after the cut off date Cut off date has to be before or equal to the posting date Revaluation of subledger

Understanding Multicurrency

Print report only for a preview of the revaluation Revaluation options

Understanding Multicurrency Realized or Unrealized gain / loss Only Unrealized allows for reversing entries Revaluation options

Understanding Multicurrency Reversing transaction If you post reversing transactions for unrealized gains and losses amounts created during the revaluation, the unrealized gain/loss revaluation amounts won’t update the original transactions. However, distributions will be created in the subledger and in the General Ledger. If you post revaluation transactions and didn’t select to reverse revaluation transactions, the revaluation amounts will update the original transactions. Distributions also will be recorded in the subledger and in the General Ledger. Revaluation options

Understanding Multicurrency Reversing EntryNon Reversing Entry The net loss of $3 is the same in both cases but you can see how the revaluation decision can affect a particular reporting period Reversing EntryNon Reversing Entry USDCADUSDCAD Original invoice Oct 1 at Original invoice Oct 1 at Month End at Month End at Unrealized Loss5Unrealized or Realized Loss5 Nov 1 Unrealized Gain5Payment made at Payment made at Realized Gain2 Realized Loss3

Understanding Multicurrency If applicable enter restrictions to identify accounts to revalue Revaluation Options

Understanding Multicurrency Not entering a restriction will result in all accounts marked for revaluation being considered for revaluation Revaluation Options

Understanding Multicurrency After the revaluation the inquiry screen should match the month end exchange rate Revaluation

Understanding Multicurrency Demo 5 Revaluation

Understanding Multicurrency Management Reporter looks to multicurrency set up to determine the exchange tables to use Typically; Balance Sheet accounts would use a spot rate Income Statement accounts would use an average rate Reporting

Understanding Multicurrency The Currency Translation Type determines which rate from the set up window to use Reporting

Understanding Multicurrency Management Reporter column formats make use of currency display and currency filters Reporting

Understanding Multicurrency Currency Display determines which currency amounts in that column are displayed in Reporting

Understanding Multicurrency Currency filter makes the column only display transactions that were originally entered in that currency. Reporting

Understanding Multicurrency ` Allows you to show US transactions at their original amount, the US amount at the month end exchange rate, or their Canadian equivalents Reporting

Understanding Multicurrency Adding a Euro exchange table allows for financial reporting in Euro’s when non of the transactions were entered in Euros and neither the functional nor reporting currency is Euros Reporting

Understanding Multicurrency

Demo 6 Reporting

Understanding Multicurrency Questions?