1. Understanding Multicurrency Presented By: Ian Richardson BA CPA CGA

2. 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

3. 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

4. Understanding Multicurrency Multi Currency

5. Understanding Multicurrency Agenda SetupTransactions Inquiry / Balancing RevaluationReporting

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

7. 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

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

9. 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

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

11. 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

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

13. 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

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

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

16. Understanding Multicurrency Demo 1 Setup

17. 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

18. 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

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

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

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

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

23. 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

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

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

26. Understanding Multicurrency Demo 2 Journal Entry

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

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

29. Understanding Multicurrency Demo 3 Apply Docs

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

31. 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

32. 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

33. 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

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

35. 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

36. Understanding Multicurrency Demo 4 Inquiry

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

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

39. 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

40. Understanding Multicurrency

43. Print report only for a preview of the revaluation Revaluation options

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

45. 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

46. 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 1.30100130Original invoice Oct 1 at 1.30100130 Month End at 1.35100135Month End at 1.35100135 Unrealized Loss5Unrealized or Realized Loss5 Nov 1 Unrealized Gain5Payment made at 1.33200133 Payment made at 1.33100133Realized Gain2 Realized Loss3

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

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

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

50. Understanding Multicurrency Demo 5 Revaluation

51. 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

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

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

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

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

56. 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

57. 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

58. Understanding Multicurrency

59. Demo 6 Reporting

60. Understanding Multicurrency Questions?