2. Multicurrency Processing in Dynamics GP
Rod O’Connor, MVP Business Solutions
Briware Solutions Inc.
#CollaborateCanada

3. Agenda Introduction Why use Multicurrency
Types of Currency related gains and losses
Realized gain and loss
Exchange rate entry
Day to day processing
Unrealized gain and loss
Month End Revaluation
Questions?

4. Introduction Rod O’Connor Briware solutions Inc. Experience:
Started career in accounting, then programming
First implementation in 1996
ERP Consultant since 2000 (Mostly)
Started Briware Solutions in 2012 as a side project
Specialties: Translating geek (with particular focus on finance and IT), streamlining business processes with clever applications of technology and psychology.

5. Why use Multi Currency
Any time we need to track a transaction and/or account balance in a currency other than our “Functional” currency, Multi- Currency streamlines our processes
Briware Solutions
(CAD)
Accounts Receivable
(USD)
Bank Account
(USD)
Accounts Payable
(USD)

6. Um…Functional Currency?
Functional Currency: The currency for our Financial Reports, usually set by our local tax authority (IRS, CRA, etc)
Originating Currency: The currency assigned to the transaction or account balance. May or may not be the same as functional currency.

7. The “functional” value of transactions over time
Functional Currency = CAD
Invoice
Period End
Settlement
USD
$100.00
$100.00
$100.00
Rate
1.05
1.06
1.03
CAD
$105.00
$106.00
$103.00
Gain/Loss
1.00
-2.00
UNREALIZED GAIN/LOSS
REALIZED GAIN/LOSS

8. Why use Multi Currency
When consolidating 2 or more companies with different functional currencies, you need to “Translate” the published Financials for each company to a common reporting currency
Briware Solutions Holdings
(CAD)
All accounting standards have similar rules for translation, most of which are highly susceptible to interpretation
Briware Solutions Inc
(CAD)
Briware Solutions USA Inc
(USD)

9. Translation overview Canadian GAAP
Monetary items to be translated at the exchange rate in effect at the balance sheet date
Non-monetary items to be translated at historical exchange rates
Revenue and expense items are translated at the exchange rate in effect on the dates they occur
Depreciation or amortization of assets is translated at the same exchange rates as the assets to which it relates.

10. Translations gain/loss
Due to the translation of different accounts at different rates, everything goes out of whack – this is Translation gain/loss.
Different standards treat this differently, but often goes into Retained Earnings area

11. Calculating Gains/Losses

12. Realized Gain and Loss Drivers for Realized Gain/Loss:
Multicurrency Setup –
Functional Currency
Exchange Table from
Originating to Functional
Exchange Rates

13. How often do we update Exchange Rates?
Depends on the complexity of your business and reporting requirements
Most guidelines leave it to the discretion of management
Personally, I recommend daily unless there are very few transactions

14. Should we let users enter a rate without saving to the table?
This is a multicurrency setup option
Based on internal control requirements, HOWEVER
When transactions are assigned a rate specifically (e.g. account transfers), it is appropriate to allow users to override the rate.
Normally, this rate is outside of the regularly scheduled rate entry and I do not like to muddy the tables

15. When you settle a receivable transaction…
Dr Cash Receipt Exchange Rate
Cr Original Invoice Exchange Rate
Dr/Cr Gain/Loss account for difference
Payables is the same, only backwards!

16. Calculating Month End Gain/Loss
Financial -> Routines -> Revaluation
Will likely require minimum 3 options
Financial: Revalues Account Balances
Sales: Revalues Receivable Documents
Purchasing: Revalues Payable Documents

17. Revaluation - Finance
Use for Cash, Investment, Non-Subledger liabilities or receivables
Drivers:
Exchange Table from
Originating to Functional
(All Originating in Balance)
Exchange Rates
Account Currencies –
Revalue Account

18. Financial is actually Realized!

19. Financial Restrictions

20. Revaluation – Sales Use for Open Receivables Drivers:
Exchange Table from
Originating to Functional
(All Originating Currencies)
Customer Maintenance –
Options
Exchange Rates

21. Revaluation - Sales

22. Sales Restrictions

23. Revaluation – Purchasing
Use for Open Payables
Drivers:
Exchange Table from
Originating to Functional
(All Originating Currencies)
Vendor Maintenance –
Options
Exchange Rates

24. Revaluation - Purchasing

25. Purchasing Restrictions

26. Questions? Rod O’Connor rod@briwaresolutions.com 844-BRIWARE, ext 110
(cell)
@Briware_Rod

27. Appendix
In the session, I made reference to videos that I had about multicurrency. The links are:
Intro to Multicurrency concepts:
Accounting for Foreign Currency Transactions in a non-multicurrency environment: foreign-currency-transactions-in-dynamics-gp/

28. Appendix
The Belinda Allen videos for Multicurrency setup can be found here: y=Multicurrency