When entering transactions such as vendor invoices, you may want to enter a vendor invoice in Canadian Dollar (CAD) for a project in Euro (EUR). In that case, the Net amount on each vendor invoice line will be assumed to be in CAD, the transaction currency, and the Billable Gross Amount will be assumed to be in EUR, the project currency. If no project is entered on a line, the Billable Gross is in home currency.
In Workamajig, the net and gross are as follows:
- Vendor Invoices: Net in transaction currency, billable Gross in project currency
- Purchase Orders: Net in transaction currency, billable Gross in project currency
- Expense Receipts: Net in transaction currency, billable Gross in project currency
- Miscellaneous Costs: Net in project currency, billable Gross in project currency
- Time Entries: Net in project currency, billable Gross in project currency
On the Add a Vendor Invoice screen, you can select a currency for the Invoice. Otherwise, the currency will default from the Vendor record. The AP Account must be in the same currency as the currency of the invoice. On the Details, the exchange rate will be automatically populated. The system pulls it from the currency exchange rate table. The exchange rate is a function of the GL Company, the Invoiced Date and the currency. If at any time, you change any of these 3 parameters, the system will get a new exchange rate. If there is no available rate for the day, the most recent before or on the Invoice date will be pulled. If there is no exchange rate, it will be set to 1. You can change manually and update your exchange rate table by pressing the 'Update Rate History' label. This label will be visible only if there is no exchange rate for the Invoice date.
Once expenses or orders are entered, the currency drop-down will be disabled.
When you enter an expense, the system will display the currencies for each amount. If the currency is blank, this means that the home currency is used. On the example above, the Canadian dollar is used. If the project has a different foreign currency, you will be asked to confirm the exchange rate for that currency. The system will calculate Net and billable Gross for that currency, in this example, the Euro.
Project Cost = (40 CAD * .9) / 1.34 = 26.87 EUR
Project Gross = (46 CAD * .9) /1.34 = 30.90 EUR
The Project Cost is used in the project profitability reports, and the Project Gross will be used as a billed amount when you enter a client invoice in EUR.
A purchase order may be entered for a vendor that is in a currency different from the Project Currency. The Vendor may be paid in a Foreign currency, when the project is in a Home Currency or it may be the opposite. A Vendor is to be paid in the Home Currency, when the project is in a Foreign currency.
Orders can be entered for a Foreign currency vendor for Purchase Orders, Insertion Orders and Broadcast orders. Each of the orders will work in the same manner.
When the PO is generated, it will display both the Net and Gross amounts for the Vendor’s currency. Then it will also display the Net and Gross amounts for the Project currency.
Understanding the amounts displayed:
In the Project Dashboard > Purchase Orders, the order will be displayed in the card view with the Currency of the Vendor’s Net and Gross Amounts, regardless of the Project’s Currency.
In this example, the Vendor is to be paid in CAD dollars. The Project Currency is USD.
The Net and Gross amounts displayed are in CAD: $3,750.00 and $4,125.00 CAD.
When viewing the Order Listing Views, the Net amount will be displayed in the Vendor’s Currency and the Gross Amount will be displayed in the Project Currency (Billable amount).
In this example, the Vendor Currency is CAD, Net amount of $3,750 CAD. The Gross amount is in the Project Currency for $5,500 USD.
When the Vendor Invoice is linked to the order, the Vendor Invoice currency must be the same as the currency of the Order.
Employees can be reimbursed in a currency different than the Home Currency. The Currency on the Expense Report needs to be set to the Currency the employee is to be reimbursed in.
The Currency and the applicable Accounts payable account information need to be defaulted from the Vendor Record linked to the Employee.
When an Expense report line is entered and linked to a billable Project, the report will display the Foreign currency amounts (Net and Gross) as well as, the Project’s Net and Gross.
When the Expense report is converted to a Vendor Invoice, the Vendor Invoice will be payable to the Employee in the foreign currency.
When selecting these Foreign currency invoices to pay, the filter needs to be set to the Currency of the Invoices to be paid. This will create a payment in the foreign currency.
When you enter miscellaneous costs, the currency for the net and the gross is the currency on the project. The exchange rate is used to report in home currency.
Currently, the exchange rates are pulled from the currency exchange rate table.
NON BANK TO BANK TRANSFERS
The currency can be selected when adding a new Journal Entry. Or, depending on the type of Journal Entry, the currency is set on the line level. You can transfer from any Foreign currency account to any HC accounts and the conversion will be automatic to the Home Currency. The Exchange Rate will be based upon the Journal Entry Date.
If the Home Currency is USD and I want to transfer 100 EUR from my EUR Bank Account to the (HC) COGS - Production expense account.
- Select the EUR currency in the Header of the Journal Entry. Then enter both detail lines in Euros.
- Bank Account - Eur 100
- COGS - Prod - 100
The system will convert the Euros into the Home Currency Value.
- 100 Euros will be credited from the Euros Bank account.
- 113.30 will be debited to the USD (HC) COGS account.
- Based upon the Exchange rate of 1.1333
BANK TO BANK TRANSFERS
If transferring between GL Accounts (Bank to Bank) with different currencies, you must enter the value of that currency. The debit and credits column will not "match".
If I want to deposit 10,000 Euro's in my Euro checking account, transferred from my USD account.
My JE would be:
- USD checking Debit: $12,821 (this is the value of 10,000 Euros at a rate of 1.281)
- Euro checking Credit: 10,000
I transferred 10,000 Euros into my Euro checking account, but it took $12,821 USD.
The Posting Detail will show the debits and credits in more detail.