Multiple Functional Currencies
Coen Decnop, Business Analyst, Infor
Dan Aldridge, Senior LN Finance Consultant, www.PerformaApps.com
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Currency Systems
Single
External
Dependent
CAD
2
Independent
CAD
Reference
Local/
Reporting
* New in FP5: Standard
CAD
EUR
USD
USD
EUR
BRL
USD
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HUGE Change is New Standard Multi-Currency System
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Not tied to Reference Currency
Mixed mode for Dependent or Independent
Multiple functional currencies
Multiple translation methods
Multiple rate determination methods
Cross exchange rates
Eliminate currency rounding problems
User defined translation methods
FSRS compliant (e.g., no revaluing history)
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Finance – Multi Currency - Standard Currency System
• Baan IV, Baan 5
• Limited functionality for Multi Currency
in terms of currency systems.
• Forced use of “reference currencies”
limited how many currencies could be
used within a single multisite structure.
• No ability to set direct exchange rates.
Caused currency differences because
of having to convert through reference.
• Many reports such as trial balances,
customer aging, supplier aging could
not be printed in other currencies.
• No financial statements to report from
standard Baan.
• No Multicurrency financial transaction
export sessions for Excel.
ERP LN
• Allows for multiple currencies across financial companies as well as
multiple currencies within each independent company. A company
can have up to 3 currencies (home currency and 2 other reporting
currencies) all transactions are kept in all 3 currencies for reporting.
• Ability to use multiple “functional currencies”.
• Dependant multi currency : which allows to translate a currency
using a reference currency to then do the conversion to the home
currency (ex: ECU, CAD, GBP using USD as reference currency to
then convert to RUP as home currency).
• Independent multi currency: this method does not use a reference
currency converts from other currency to home currency
• Standard: this allows for mix of dependant and independent currency
system within the multi site environment
• Gives ability to report in one currency across all companies as well as
home currency within a financial company. Gives ability to reconcile
or print financial reports in different currencies.
• Financial statements allow Trial Balance to Excel by currency.
• Financial transactions can be exported to Excel by GL, dim, currency.
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IFRS Requirements
• IFRS/IAS section 21 requires valuation against historical rates for nonmonetary assets for the functional currency
• Non-monetary assets are Fixed Assets, Inventory and WIP
• This rule applies to the functional currency used
• In some multi-site instances more than one functional currency applies for
a subsidiary
• For example a Czech subsidiary only selling to the US HQ in USD; local
statutory reporting needs to take place in CZK, corporate reporting in USD
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Example Multiple Functional
Currencies
Company 100 – United States
Company 200 – Czech Republic
Home Currency
Currency Code
Functional
Home Currency
Currency Code
Functional
Local
USD
Yes
Local
CZK
Yes
Reporting 1
EUR
Yes
Reporting 1
USD
Yes
Reporting 2
CAD
Yes
Reporting 2
EUR
Yes
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Enhanced Standard Currency System
• When required, the 2 reporting currencies represent additional functional
currencies, they will behave in exactly the same way as the local currency
• In logistics and hence in the integration transactions the amounts in all
functional currencies will be stored
• The translation rules will be the same as for the local currency: directly
from the transaction currency
• The use of the exchange rate type is the same as for the local currency
• In logistics the EMM settings for the reporting currencies that are defined
as functional currencies will therefore be ignored (translation method and
the rate determination method)
• The multi-currency settings for the additional functional currencies for
individual ledger accounts will also be ignored for the integration accounts
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Company 200 – Czech Republic
Purchase Order 2012301
TC: 10 items for GBP 10
LC: 1 CZK = 0.2 GBP
R1: 1 USD = 0.5 GBP
R2: 1 EUR = 6 CZK
Direct Translation from Transaction Currency to all functional
currencies (= GBP->CZK,GBP->USD and GBP->EUR)
200 Invoice Accrual
200 Inventory
200 Interim Transit
TC:100 GBP
Sale of the 10 items
purchased earlier, rates
have changed
LC: 1 CZK = 0.25 GBP
R1: 1 USD = 0.4 GBP
R2: 1 EUR = 7 CZK
However: historical
amounts are transferred
to COGS!
200 Interim COGS
TC:500 CZK
TC:500 CZK
LC
500 CZK
500 CZK
500 CZK
500 CZK
500 CZK
500 CZK
R1
200 USD
200 USD
200 USD
200 USD
R2
83 EUR
83 EUR
200 USD
83 EUR
83 EUR
83 EUR
200 USD
83 EUR
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Finance Reports Excel Export/Import Different Currencies
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Financial Extracts to Excel – Different Currencies
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Financial Transactions to Excel – Any Functional Currency
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Financial Transactions to Excel – Eliminates Custom Reports
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Integration Transactions to Excel – Any Exchange Rate Type
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Enhanced Standard Currency System
• For existing customers, CRI is required
• For new customers; the new EMM parameter can be switched on
• Historical rates also apply to FAM, all home currencies are stored for all
asset transactions
• All monetary accounts (AR/AP/Cash etc.) are valued according to the
current functionality, including the EMM settings for Reporting currencies
1&2! Only the integration accounts are valued differently (except Invoice
Accrual)
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For more great content, visit http://inforln.com
and www.performaapps.com
For Baan and LN consultants, contact Dan Aldridge, CEO Performa Apps:
Phone: +1.703.251.4504
E-mail: dan.aldridge@performaapps.com
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