Understanding Multicurrency
Presented By: Ian Richardson BA CPA CGA
Understanding Multicurrency
Accounts
Pyable
(USD)
Accounts
Receivable
Euro
Accounts
Payable
(Remimbi)
Foreign
Currency
Journal Entry
Multi Currency
Foreign
Subsidiary
Bank
Account
(USD)
Reporting
Needs
Accounts
Receivable
(USD)
Understanding Multicurrency
Accounts
Pyable
(USD)
Accounts
Receivable
Euro
Accounts
Payable
(Remimbi)
Foreign
Currency
Journal Entry
Multi Currency
Foreign
Subsidiary
Bank
Account
(USD)
Reporting
Needs
Accounts
Receivable
(USD)
Understanding Multicurrency
Multi Currency
Understanding Multicurrency
Agenda
Setup
Transactions
Inquiry /
Balancing
Revaluation
Reporting
Understanding Multicurrency
Setup
System
• Currency creation
• Z-XX come with GP
• Set currency symbol
• Seperators
• GL accounts (if you
want different
accounts per
currency)
Understanding Multicurrency
Setup
System
• 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
Understanding Multicurrency
Setup
System
• Exchange Table
• Set multiply or
divide
• Set default
• Exact or look
forwards or
backwards
• Rate Variance
Understanding Multicurrency
Setup
System
• 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.
Understanding Multicurrency
• Multicurrency
Access
Setup
• For both the
currency and
System
the exchange
rate
Understanding Multicurrency
Setup
Financial
• 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
Understanding Multicurrency
• Rate Types
• Tie the exchange
table with the
Setup
rate type
Financial
selected in the
Multicurrency
setup window
Understanding Multicurrency
Setup
Cards
• Account Currencies
• Mark that an
account can use the
foreign currencies
• Identify accounts
that should revalue,
and how
• Set translation type
for reporting
Understanding Multicurrency
Setup
Cards
• Currency Account
Update
• Quickly set
account currency
information for
ranges of
accounts
Understanding Multicurrency
Setup
Posting
• Allow batch edit
listings and posting
journals to show
multicurrency
information by
checking the box in
posting set up
Understanding Multicurrency
Demo 1
Setup
Understanding Multicurrency
• The system will use
the document date /
transaction date to
determine the
Transactions
exchange rate to use
• You can choose to
enter a different rate
if you wish
Understanding Multicurrency
• If you choose to
change the rate and
have marked to
allow to use rates
Transactions
without adding to
the table you can
choose continue to
not add the rate
Understanding Multicurrency
Transactions
• Override the
rate on a bank
transfer to use
the rate of your
foreign currency
purchase or sale
Understanding Multicurrency
Transactions
• Subledger
transactions
display in
originating
currencies
• SOP and POP
can switch
Understanding Multicurrency
Transactions
• Distributions
for these show
both
functional and
originating
currency
Understanding Multicurrency
Transactions
• For journal
entries use the
view menu to
see transactions
in their
originating
currency.
Understanding Multicurrency
• This is particularly
important in journal
entries as if you leave
the view as functional
and change the
Transactions
currency to USD you
are making a journal
entry for the Canadian
equivalent of
Understanding Multicurrency
Transactions
• Notice that the
dollar amounts
are still
denominated
as C$ (from
currency setup)
Understanding Multicurrency
Transactions
• Changing the
view we get
the actual US
entry that
was entered
Understanding Multicurrency
Demo 2
Journal
Entry
Understanding Multicurrency
• The exchange rate
has likely changed
between when a
Transactions
transaction was
originally entered
and when it gets
paid
Understanding Multicurrency
Transactions
• The system
will
automatically
calculate the
gain loss
difference
Understanding Multicurrency
Demo 3
Apply Docs
Understanding Multicurrency
• Change the view
to originating to
see foreign
Inquiry
currency
Balancing
transactions in
their original
currency
Understanding Multicurrency
Inquiry
Balancing
• 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
Understanding Multicurrency
• Select the period
and then amounts
radio button
Inquiry • Period balance will
Balancing show the ending
balance for the
period in the
originating currency
Understanding Multicurrency
Inquiry
Balancing
• 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
Understanding Multicurrency
• Revaluations will
not generate the
correct equivalent
Inquiry
ending balance
Balancing until these
functional currency
transactions are
removed
Understanding Multicurrency
• Keep in mind a bank
reconciliation is not
balanced until it has
also been compared
Inquiry
Balancing to the GL
• In this case the USD
bank rec will need to
balance to $75 USD
Understanding Multicurrency
Demo 4
Inquiry
Understanding Multicurrency
• Revaluation
can be done at
both the
Revalution
general ledger
and the
subledger level
Understanding Multicurrency
Revaluation
of
Subledger
• Enter a
document cut
off to ensure
that you are not
revaluing
transactions in
the next period
Understanding Multicurrency
• Be aware that
revaluation may not
occur if transactions
have apply records;
Revaluation
even after the cut off
of
date
subledger
• Cut off date has to
be before or equal to
the posting date
Understanding Multicurrency
Understanding Multicurrency
Understanding Multicurrency
Understanding Multicurrency
Revaluation
options
•Print report
only for a
preview of
the
revaluation
Understanding Multicurrency
• Realized or
Unrealized gain /
loss
Revaluation
• Only Unrealized
options
allows for
reversing
entries
Understanding Multicurrency
Revaluation
options
• 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.
Understanding Multicurrency
Reversing Entry
Non Reversing Entry
Reversing Entry
USD
Non Reversing Entry
CAD
USD
CAD
Original invoice Oct 1 at 1.30
100
130
Original invoice Oct 1 at 1.30
100
130
Month End at 1.35
100
135
Month End at 1.35
100
135
Unrealized Loss
5
Nov 1 Unrealized Gain
5
Payment made at 1.33
100
Realized Loss
Unrealized or Realized Loss
Payment made at 1.33
133
5
200
133
Realized Gain
3
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
2
Understanding Multicurrency
Revaluation
Options
• If applicable
enter
restrictions to
identify
accounts to
revalue
Understanding Multicurrency
• Not entering a
restriction will
result in all
Revaluation
accounts marked
Options
for revaluation
being considered
for revaluation
Understanding Multicurrency
Revaluation
• After the
revaluation the
inquiry screen
should match
the month end
exchange rate
Understanding Multicurrency
Demo 5
Revaluation
Understanding Multicurrency
Reporting
• 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
Understanding Multicurrency
• The Currency
Translation Type
determines
Reporting
which rate from
the set up
window to use
Understanding Multicurrency
• Management
Reporter
column formats
Reporting
make use of
currency display
and currency
filters
Understanding Multicurrency
• Currency
Display
determines
Reporting
which currency
amounts in that
column are
displayed in
Understanding Multicurrency
• Currency filter
makes the column
only display
Reporting
transactions that
were originally
entered in that
currency.
`Understanding Multicurrency
Reporting
• Allows you to show
US transactions at
their original amount,
the US amount at the
month end exchange
rate, or their
Canadian equivalents
Understanding Multicurrency
Reporting
• 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
Understanding Multicurrency
Understanding Multicurrency
Demo 6
Reporting
Understanding Multicurrency
Questions?