Multi-Currency

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Multi Currency

This module allows transaction in multi-currency. The system will auto-calculate gain/loss in currency exchange and post to Journal and G/L entries accordingly.

Go to Tools > Program Control > Module Setting

Check the checkbox of Multi-Currency to enable it.


Maintain Foreign Currency

Go to General Maintenance > Currency Maintenance

By default, Home Currency is created.

MC1.png

Click on New to add a currency.


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Currency Code: key in a unique currency code

Currency Symbol: key in currency symbol

Currency Word: key in the name of currency in words

Currency Word 2: key in an alternative name of the currency (if any)

Bank Buy Rate: key in default exchange rate when you are selling this currency (USD) to bank for home currency (MYR).

Bank Sell Rate: key in default exchange rate when you are buying this currency (USD) from bank with home currency (MYR)

Account and Journal Type Setting for Currency Exchange Gain/Loss: this setting is needed for each currency (including Home Currency) if you are using multi-currency.

Exchange Gain Account: select the Gain On Foreign Exchange Account

Exchange Loss Account: select the Loss On Foreign Exchange Account

Exchange Gain/Loss Journal: select the journal type of Gain/Loss journal entries


Click on OK.

Highlight home currency (MYR) and click on Edit to assign G/L accounts and Journal type,


MC3.png

Click on OK.


MC4.png


Highlight a foreign currency,

Click on Currency Rate button,


MC5.png

You may click on Add to maintain currency rates for specific date/period. During transaction, these rates will be captured instead of the defaulted rates.


Create Debtor/Creditor with Foreign Currency

Go to A/R > Debtor Maintenance (similarly for A/P > Creditor Maintenance)

Select USD for the Currency field


MC6.png

Note: For a debtor/creditor that trades in foreign currency as well as home currency, you need to maintain separate accounts for different currencies. E.g. 300/A001 Debtor A for RM, and 300/A002 Debtor A for USD.


Click on Save,

Now in my debtor list, there is a debtor with currency = USD.


MC7.png


Invoice in Foreign Currency

Go to Sales > Invoice

Click on Create A New Invoice,

Select a debtor with foreign currency,

Add few items (be aware that now the prices are in USD),

At footer, default currency rate is adopted to arrive at Local Net Total.

To modify exchange rate, you may key in any rate or click on the drop down button to select an earlier maintained rate.


MC8.png

Click on Save and Preview, OK,

The printout invoice is, of course, in USD currency.


MC9.png


You may go to A/R > A/R Invoice Entry to locate the posted entry.


MC10.png

Double click on an Invoice No. (Or highlight an Invoice then click on View)


MC11.png

Click on View > View Posting Details (or press Ctrl + F11)


MC12.png


Let's create a new A/R Invoice Entry ... directly from A/R menu.


A/R Invoice in Foreign Currency

Go to A/R > A/R Invoice Entry

Click on Create A New A/R Invoice,

Select a debtor with foreign currency,

The Currency and default currency rate is displayed,

To change the exchange rate, you may key in any rate or click on the drop down button to select an earlier maintained rate.

Click on '+' to select a sales account, and key in amount (in USD).


MC13.png

Change: Click on this button to change Local Net Total; usually used to adjust the rounding of final total.


Click on Save.


Go to G/L > Journal Of Transaction

Define filter options,

Click on Inquiry,


MC14.png


Payment Received in Foreign Currency

Go to A/R > A/R Receive Payment

Click on Create A New A/R Payment,

Select a debtor with foreign currency,

The Currency and default currency rate is displayed,

Change the USD to MYR rate to 4.25 (so there will be a Loss in Foreign Exchange)

Click on '+' to select a payment method, and key in payment amount (in USD).

Check the checkbox of an invoice to knock off.


MC15.png

Click on Save....


MC16.png

The prompted screen shows there will be a loss in foreign exchange of RM53.

Click on OK..


Preview the A/R Payment,

MC17.png

You may go to A/R > A/R Receive Payment to locate the posted entry.

Double click on the Payment No. (Or highlight the Payment then click on View)

Click on View > View Posting Details (or press Ctrl + F11)

This shows that the system will (base on the payment current rate) auto generate G/L entries should there was a gain/loss in exchange rates.


MC18.png


Go to G/L > Journal Of Transaction,

Define the filter options,

Click on Inquiry,


MC19.png


Payment Received into Foreign Currency Bank

You may also record payment received in foreign currency by debiting into a foreign currency bank account,

First of all, you need to create a bank account in USD. The parent account (if any) should not be a Home Currency account)


MC21.png


Then, go to A/R > A/R Receive Payment

Click on Create A New A/R Payment,

Select a debtor with foreign currency,

The Currency and default currency rate is displayed,

Change the USD to MYR rate to 4.25

Click on '+' to select a payment method of Bank Account with USD, and key in payment amount (in USD), the To Bank Rate should be 1.00

Check the checkbox of an invoice to knock off.


MC22.png

Click on Save, OK.


Go to G/L > Journal Of Transaction

Define filter options,

Click on Inquiry,


MC23.png

Remember that the USD Bank Account has been debited with USD 530.

If this USD is sold/converted to home currency, an entry to record the Cash Payment (USD) and Cash Receipt (MYR) is needed to credit USD Bank Account with USD 530 and debit a MYR Bank Account with the converted currency.


Go to G/L > Cash Book Entry

Click on Create a New Cash Transaction, New Payment Voucher

Select Currency = USD, Currency Rate = 4.3

Select Payment Method = USD Bank Account, To Bank Rate = 1.0000

Debit to a MYR Bank Account.


MC24.png

Click on Save.


Go to G/L > Journal Of Transaction

Define filter options,

Click on Inquiry,


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Go to G/L > Ledger Reports,

Define filter options and click on Inquiry,


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(The columns of Org.DR, Org.CR and Curr.Code refer to original transaction currency and transaction currency code. The columns of DR and CR refer to the currency of that specific account.)

Observe carefully USD Bank Account, the Home currency has a negative balance ( -26.50) that was caused by different exchange rates. A journal entry is needed to offset this balance in home currency and DR/CR to Gain/Loss in Exchange Rate.


Go to G/L > Journal Entry,

Click on Add a New Journal Entry,

Select Currency = MYR

Currency Rate (for USD Bank a/c) = 0.0000

Currency Rate (for Gain on Foreign Exchange a/c) = 1.0000


MC27.png

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