The Financial Transfer accounting configuration supports multi-currency processing.
Enables selling and purchasing with financial transfer
Multi-currency processing enables you to sell or purchase in foreign currency and to use the AR Voucher Transfer and AP Voucher Transfer screens to transfer foreign currency amounts and exchange rates to your financial accounting system.
Gain/loss on foreign exchange occurs at time of payment
Any gain or loss on foreign exchange gets realized in your financial accounting system when customer payments are received or supplier bills are paid.
Not available with Legacy Financials
If you are still on the Legacy Financial Modules accounting configuration, be aware that the AR-AP-Banking processes do not support any multi-currency processing. If you need foreign currency payment processing and gain/loss on foreign exchange posting, you must convert to the Financial Transfer accounting configuration and use a mainstream accounting package that supports multi-currency processing.
Link:
Legacy Financials Conversion Guide
Related Videos:
Video - Purchasing in a Foreign Currency
Video - Selling in a Foreign Currency
Multi-Currency Elements
Multi-currency processing consists of the following elements.
Currency Table
The Currency Table screen is used to activate foreign currencies and to update exchange rates. Within each currency you can view customers and suppliers assigned to that currency.
Customers
Customers can be assigned to foreign currencies by means of the Currency field in the Customers screen. Foreign currency form layouts are specified on the Forms sub-tab.
Selling Prices
Base prices, price levels, and contract prices are maintained and referenced in home currency and get multiplied by the foreign currency exchange rate to calculate the Foreign Price during quote and sales order entry.
Fixed Exchange Rate Pricing
You will operate with two currency tables – one in your financial accounting system and one in DBA. Exchange rates should be updated on a regular basis in your financial accounting system to reflect current market exchange rates for proper realization of currency gain or loss against customer and supplier payments. By contrast, exchange rates in DBA can remain fixed for long periods of time if your objective is to furnish fixed selling prices to your foreign currency customers. In that case, you would only change a currency’s exchange rate concurrent with a general set of price changes.
Selling Prices Data View
The Selling Prices data view lists item base prices and calculated prices by price level and currency. The output tool enables you to output currency and price level prices for price list creation.
Quotes and Sales Orders
When a quote or sales order is created for a customer assigned to a foreign currency, it is assigned to that currency and the current exchange rate in the currency table. The exchange rate remains fixed for the duration of the sales order and applies to all invoices. Line item prices and shipping charges are displayed in home and foreign currency amounts.
Sales Form Layouts
The sales form layouts -- ppQuote.rtm, ppAcknowledgment.rtm, ppInvoice.rtm – automatically print in foreign currency when the customer is assigned to a foreign currency. The foreign currency will print using the currency code or currency symbol, depending on your preference specified in the Currency Table screen.
AR Voucher Transfer
The foreign currency code, foreign amount, and exchange rate are included in the AR voucher output file so that voucher transfers to your financial accounting system can be made in foreign currency.
Suppliers
Suppliers can be assigned to foreign currencies by means of the Currency field in the Suppliers screen.
Supplier Prices
Supplier prices are maintained on the Sources tab of the Stock Items screen. The Supp Price is maintained and displayed in the currency assigned to the supplier without any home currency translation or cross-reference.
Purchase Orders
When a purchase order is created for a supplier assigned to a foreign currency, the purchase order is assigned to that currency and the current exchange rate in the currency table. Line item prices are displayed in home and foreign currency amounts.
PO Form Layout
The PO form layout (ppOrder.rtm) automatically prints prices with foreign currency symbols and amounts without need for a foreign currency layout.
PO Invoices
PO invoices for foreign currency suppliers are matched in foreign currency using the current exchange rate in the currency table at time of invoice entry. In cases where the PO header exchange rate differs from the invoice exchange rate, the resulting home currency pricing discrepancies get posted to the RNI Adjustments account.
AP Voucher Transfer
The foreign currency code, foreign amount, and exchange rate are included in the AP voucher output file so that voucher transfers to your financial accounting system can be made in foreign currency.
