Setup Multi-Currency Tracking
NOTE: If you are using GL Companies and using Multi-Currency additional setup is required: Multi-Currency: GL Company (currently in Beta)
Under Admin/Manager > System Setup > GL Settings > GL Tracking Options > MultiCurrency Tracking, the Multicurrency Tracking options form allows you to enter the following:
- Use Multiple currencies (this checkbox will be disabled as soon as bank accounts and GL transactions are entered for foreign currency)
- My Home Currency (will be disabled as soon as bank accounts and GL transactions are entered for foreign currency)
- Realized Gains and Losses Account (This account will be used to post gains or losses realized on payments of client or vendor invoices in other currencies when the exchange rate is different). NOTE: This should be set up as an Income or Other Income account type.
Rounding Adjustment Account (This account will be used for rounding adjustments created to balance the General Ledger when transactions in other currencies are posted and converted to home currency). NOTE: This should be set up as an Other Income account type.
Once the system is set up to use multiple currencies, you will be able to enter currencies for your bank accounts.
Setup Currency On Bank Accounts, AR, AP, And Credit Card Accounts
To set up your multi-currency GL Accounts, use the Admin/Manager > System Setup > GL Settings > GL Accounts.
- For each foreign currency, you must enter a new Accounts Receivable Account, and an Accounts Payable account in that Currency. If Credit Card accounts apply, then you will also need to create a new Credit Card account in the foreign currency. A Bank Account in a different currency can be added, but is not required.
- Be sure to add the Realized Gains and Losses Account and the Rounding Adjustment Account. Once these accounts are created on the GL Accounts, the accounts will need to be set on the GL Settings > GL Tracking Options > Multi-Currency.
Revalue on Balance Sheet
- This check box applies to your Advanced Bill Accrual Account and your Unapplied AR/AP Accounts.
- Foreign currency amounts applied to the Accrual accounts (Advance Bill Accrual and/or Unapplied AR/AP Accounts) will be reversed or unaccrued once it is applied to a client invoice. When the client invoice is posted, the Accrual Account will be reversed at the rate on the client invoice, thus creating a REALIZED gain/loss.
- The Revalue on Balance Sheet checkbox will cause the amounts not applied (either Prepayments or Advance Bill Accruals) to be revalued at a new rate when you run the Balance sheet. The difference between the revalued balance in HC and the original amount in HC constitutes an UNREALIZED gain/loss.
NOTE: When entering transactions in foreign currencies later, only currencies specified on bank accounts will be allowed. As soon as transactions are entered, the currencies on these accounts will be locked.
Manage Your Currency Exchange Rates
When entering transactions in foreign currencies, a default currency rate is pulled from a table in the database. You can manage your own exchange rates under Admin/Manager > System Setup > GL Settings > Currency Rates.
NOTE: The Exchange Rates are automatically downloaded from https://openexchangerates.org.
Exchange rates can be entered for each currency, date and GL company.
If no exchange rate is found for the currency, date and GL company, it will be set to 1 on the transaction screens where it can then be changed manually.
You can enter these rates manually or the system will automatically pull the currency rates from openexchangerates.org site.
Setup Companies, Projects, Campaigns And Retainers
You can define a default currency on a company record. This currency will then default when creating a new project for that client. Campaigns and retainers must have the same currency as the projects they are linked to.
Once transactions are entered for a project, the currency field will be locked.
The project budget screens will be displayed using the currency on the project, not the home currency.