Foreign Currency Setup
- Michelle Russell
Analytics
Moveware provides the capability to have both foreign currency customers and suppliers. Conversion rates are based on manually entered exchange rates at the time of invoicing and receipt or payment. Each customer and supplier in Moveware can either be the default currency or a specified foreign currency. As a result, all transactions relating a customer or supplier will be in the assigned currency.
Foreign Currency Setup
Prior to commencing to use the foreign currency features contained in Moveware, the following system setup is required:
Item | Description | Notes |
System parameters | Allow Foreign Currency processing has to be enabled |
|
Exchange variation control account | Used to record variations in the default currency amount of invoices between the time of invoicing and payment/receipting | In General Setup create an account for the exchange variation account and make it a Linked Account of type Exchange Variation. |
Foreign Currencies | Additional currencies can be added in Administration > Moveware Setup > Codes > Currency |
|
Foreign Currency rates | Currency exchange rates compared to the default currency are manually entered for a given date to be used for transactions on that date. |
|
Foreign Currency bank Accounts | Only if the bank account is held in the foreign currency | In General Ledger Setup create an account for the bank account > in Control Accounts select the type of currency that the account will operate in from the list available |
Invoicing and Purchases
Invoicing in a foreign currency is completed in the same manner as for a default currency.
Once the invoice is added for a foreign currency customer or supplier the default currency and the current exchange rate appears in the invoice header details. The charge details by default are entered in the foreign currency but by un-checking the Show Foreign Currency can be entered in the default currency.
Updating Invoices
The conversion rate to the default currency is the rate set at the time of the invoicing creation.
The DI journal is always created in the default currency using the same conversion rate (e.g. entries into customers control, revenue, and tax).
Receipting and Payments
The process for Receipting and Payments for foreign currency customers and suppliers is done in the same manner as for the default currency. When selecting a foreign currency customer an exchange rate field will be displayed on the receipting or payments screen which will enable you to enter the current exchange rate.
Enter the receipt or payment amount in the local (or base) currency and the foreign currency amounts as required and apply the amounts to each invoice. As the Invoice was probably updated at a different exchange rate, there may be an unapplied local currency amount. This amount will be an exchange rate variation which Moveware will automatically record as part of the DR/CP journal and a foreign exchange gain or loss.
Transactions
The transactions in Customers and Suppliers can be viewed and entered in the foreign currency or default currency using the current conversion rate by checking or un-checking Show Foreign Currency.