Template v5 October 12, Copyright © Infor. All Rights Reserved. 1 Multiple Functional Currencies Coen Decnop, Business Analyst, Infor Dan Aldridge, Senior LN Finance Consultant,

Template v5 October 12, Copyright © Infor. All Rights Reserved. 2 Currency Systems CAD Reference EUR USD Dependent BRLUSD CAD Independent External CAD Local/ Reporting USD Single * New in FP5: Standard

Template v5 October 12, Copyright © Infor. All Rights Reserved. HUGE Change is New Standard Multi-Currency System 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)

Template v5 October 12, Copyright © Infor. All Rights Reserved. Finance – Multi Currency - Standard Currency System 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. 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. ERP LN Baan IV, Baan 5

Template v5 October 12, Copyright © Infor. All Rights Reserved. IFRS Requirements IFRS/IAS section 21 requires valuation against historical rates for non- monetary 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

Template v5 October 12, Copyright © Infor. All Rights Reserved. Example Multiple Functional Currencies Home CurrencyCurrency CodeFunctional LocalUSDYes Reporting 1EURYes Reporting 2CADYes Company 100 – United States Home CurrencyCurrency CodeFunctional LocalCZKYes Reporting 1USDYes Reporting 2EURYes Company 200 – Czech Republic

Template v5 October 12, Copyright © Infor. All Rights Reserved. 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

Template v5 October 12, Copyright © Infor. All Rights Reserved. Company 200 – Czech Republic Purchase Order 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 500 CZK 200 USD 200 Interim Transit 200 Inventory 83 EUR LC R1 R2 TC:100 GBP 500 CZK 200 USD 83 EUR 500 CZK 200 USD 83 EUR TC:500 CZK 500 CZK 200 USD 83 EUR 200 Interim COGS TC:500 CZK 500 CZK 200 USD 83 EUR 500 CZK 200 USD 83 EUR 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!

Template v5 October 12, Copyright © Infor. All Rights Reserved. Finance Reports Excel Export/Import Different Currencies 9

Template v5 October 12, Copyright © Infor. All Rights Reserved. Financial Extracts to Excel – Different Currencies 10

Template v5 October 12, Copyright © Infor. All Rights Reserved. Financial Transactions to Excel – Any Functional Currency 11

Template v5 October 12, Copyright © Infor. All Rights Reserved. Financial Transactions to Excel – Eliminates Custom Reports 12

Template v5 October 12, Copyright © Infor. All Rights Reserved. Integration Transactions to Excel – Any Exchange Rate Type 13

Template v5 October 12, Copyright © Infor. All Rights Reserved. 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)

Template v5 October 12, Copyright © Infor. All Rights Reserved For more great content, visit and For Baan and LN consultants, contact Dan Aldridge, CEO Performa Apps: Phone: