Advantage Multiple Currency Support Current Procedures

Transcription

1 Advantage Multiple Currency Support Current Procedures Overview: This document explains how to process multiple currencies in a single database; how to convert to a HOME currency and how to consolidate databases for reporting. Databases are established by legal entity where a HOME currency is established. Each database can also contain multiple profit centers at various levels at the HOME currency. General Ledgers may be converted to a HOME currency while maintaining the FOREIGN currency amounts for flexible reporting. General Ledgers for multiple databases may be consolidated for reporting purposes. o When multiple databases are created, the OFFICE code in each represents the entity and keeps the accounts unique for consolidation. Database Maintenance / System Setup Notes: General Ledger Accounts to Setup The following accounts must be established in the Chart of Accounts in order to support the multi currency process. Balance Sheet A/P Cash Account HOME Currency A/P Cash Account FOREIGN Currency A/R Cash Account HOME Currency A/R Cash Account FOREIGN Currency A/P FOREIGN Currency Cash Exchange Account (contra account to A/P Cash Account A/R FOREIGN Currency Cash Exchange Account (contra account to A/R Cash Account Accounts Payable HOME Currency Accounts Payable FOREIGN Currency Accounts Payable FOREIGN Currency Exchange (contra account to Accounts Payable Conversion Adjustment Account Home Currency Page 1 of 5

2 Vendor Bank Income Statement Exchange Gain/Loss from Conversion Conversion Adjustment Office A Conversion Adjustment Office is created in databases held in currencies other than the HOME currency. This office will store Adjustments to each account based on currency conversion rules established. See the section on Conversion and Consolidation of Multiple Databases of Different Currencies found later in this document. Create vendor with a Prefix as part of the vendor code identifying it as FOREIGN Currency vendor. Enter the appropriate A/P Account default (Accounts Payable. Enter the appropriate Expense Account default (Accounts Payable FOREIGN Currency Exchange (contra account to Accounts Payable. A Bank record may be setup for each separate currency. The Bank record includes the appropriate default GL Accounts for Cash used in processing later. A/P Cash Account A/R Cash Account Transactional Processing Job/Billing Transactions Detail transactions posted to Jobs, Media Orders or Operating Expense Accounts (Non Job Transactions) are posted using the HOME currency. The following transactions do not require any conversion when input. Employee Time Income Only Advance Billing Records Transactions where Currency Conversion occurs: Page 2 of 5

3 Accounts Payable Job Cost Records Currency should be converted if the vendor s code indicates it is different from the Database s HOME Currency. This procedure assumes that the vendor is being paid in their currency (FOREIGN) and the job cost records are posted in the HOME currency for billing. Check Writing Vendor Selection The vendor s code indicates if it is a FOREIGN currency vendor. The Invoice Amount is entered in Vendor s currency. The Disbursed Amount is entered in the HOME currency by the user (current exchange rate must be applied) as it is entered onto the Job, Media Order, or Operating Expense Account. The Exchange Variance must be calculated and then posted to the A/P Foreign Currency Exchange account on the GL Disbursement tab. The Exchange account will default based on the vendor selected. Summary Entry Example of Job Cost Entry: A/P FOREIGN Currency CR FOREIGN Rate (100.00) Production WIP Account DR HOME Rate A/P FOREIGN Currency Exchange CR FOREIGN Rate (30.00) The Bank selected determines the Cash Account to use when checks are written. Check Writing allows the selection of vendor invoices by A/P account which should be limited to the ones matching the Bank s cash account. Summary Entry Example of check written to vendor at FOREIGN Rate: A/P Cash Account FOREIGN Currency CR FOREIGN Rate (100.00) A/P FOREIGN Currency DR FOREIGN Rate Page 3 of 5

4 Client Billing Billing records are entered and stored in the HOME currency established for the database. For clients that need to be billed in their own currency, the Currency Exchange Rate is entered when invoices are printed. Client Cash Receipts Client invoices are converted at the time of printing using the Currency Exchange Rate entered. When payment is received in a FOREIGN currency, the corresponding Bank is selected in the Cash Receipts application. The system displays the value of the invoice in the HOME currency. The Amount of the cash received is entered in the FOREIGN currency. The Disbursed Amount is entered in the HOME currency. The Variance is entered in the Exchange Gain/Loss from Conversion account. o This amount is calculated automatically by the system. Other Cash Receipts Summary Entry Example of cash received at FOREIGN rate: Original AR Record is for 13,000 at the HOME Rate, Cash Received at the FOREIGN Rate of 10,000] Cash Account FOREIGN Currency DR FOREIGN Rate 10, Accounts Receivable CR HOME Rate (13,000.00) Exchange Gain/Loss from Conversion DR FOREIGN Rate 3, (Using GL Adjustment Account) If Miscellaneous (Non Client) cash is received in a FOREIGN currency, the corresponding Bank is selected. The amount of the cash received is entered in the FOREIGN currency. The disbursement amount is entered in the HOME currency and posted to the selected account. The user calculates and posts an offsetting entry to the Exchange Gain/Loss From Conversion account. Page 4 of 5

5 Conversion and Consolidation of Multiple Databases of Different Currencies A separate Consolidation database is used for the purpose of combining databases in multiple currencies into one. Prior to consolidation, the user will make appropriate journal entries to adjust accounts based on their established currency conversion rules to the Conversion Adjustment Office. Consolidation of databases may occur on single or multi currency databases. Currency Conversion: Export the Trial Balance from Advantage GL to Excel. Using established conversion rules and the balances in Excel, calculate and create an adjusting journal entry affecting each account for the variance between the FOREIGN currency and the HOME currency. The journal entry will be created for the Conversion Adjustment Office. This provides for the ability to run financial statements in both the FOREIGN and HOME currencies before consolidation. Import the Journal Entry into the General Ledger for this same office using Import application. Consolidation: The Advantage GL Consolidation feature transfers all balances to the Consolidation database. Office codes keep accounts unique for each entity. Reporting Financial statements can be printed in the FOREIGN currency selecting the appropriate office(s). Financial statements can be printed in the HOME currency by selecting all offices. Page 5 of 5