Foreign Currency in Maconomy Maconomy Workspace Client © 2015 Deltek, Inc. Deltek proprietary, all rights reserved.
Foreign Currency in Maconomy Maconomy Workspace Client
© 2015 Deltek, Inc. Deltek proprietary, all rights reserved.
Copyright Information
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This edition is published on March 2015.
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Objectives
At the end of this module you should be able to:
Make registration in foreign currency
Expenses, Vendor & Customer invoices
Create and receive payments in foreign currency
Customer & Vendor Payments
Create Projects inforeign currency
Revaluate and Print Currency report
Update Exchange Rate Tables
Use project Price lists in foreign currency
Create Accounts in foreign currency
Understand currency setup for single & multi company setup & with multi currencies
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Agenda
General foreign currency information
Day to Day processes:
Register entries in foreign currency
Register Payments
Use foreign currencies on Projects
Ad Hoc processes:
Project Price lists
Create Accounts in foreign currency
Montly processes:
Print Currency report to make evaluation
Update Exchange Rate table
System Setup:
Multi company with multi currency
Review currency Setup
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Currencies in Maconomy
Foreign currencies are used throughout Maconomy and can be identified with different types used in various situations.
Once the system has been setup some of the windows do not need any attention. Some processes can be performed ad hoc when necessary, on a monthly basis as part of the month end procedures and others will be ongoing as part of the day to day registration
In this presentation we will look at the Day to Day use of currencies Montly updates & revaluation Ad Hoc updates Review system setup
Note: Depending on the processes & procedures the Monthly and Ad Hoc processes might have to be done on a daily basis to run the business.
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Currency Types
Maconomy has a range of currency types and the account or customer/vendor currency is used as the basis for valuation
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• Parent or server currency. All companies roll up to this currency. Can only have one in Maconomy. Enterprice Currency
• Companies ‘ functional or operational currency. Base Currency
• Currency of the transaction – GL, AR, AP, Project. Transactional Currency
• Currency of GL, Customer and Vendor accounts Account Currency
• Currency and date that for display on reports Reporting Currency
• Currency fixed on Project
• Invoicing – Invoices on Account different from project currency Project /Invoicing Currency
• Sales prices in foreign currencies Project Pricelist
Currencies in Maconomy
Where When Minimum
Accounts Customers, Vendors and GL Cash Accounts,
Currency selected at setup,
Ad Hoc
Transactions Vendor invoices, Bank Payments, Customer Invoices & Payments,
GL journal entries, Expenses
On going at registration Day to day
Projects Project can be created in a foreign currency and with a fixed exchange
rate per project
Budget and entries will be displayed and invoices created in the project currency
Day to day
Invoicing System parameter can allow invoices to be issued in foreign currency
The currency can be default on project or be selected at creation
Day to Day
Pricelists Projects can be created with pricelists where the billing prices are
in foreign currency
Time entries will be calculated with prices from the pricelist and displayed in
the currency of the project
Ad Hoc
Payments Customer payment, Banking, GL Journal
Customer at payment registration, Vendor Payment in currency of account
Day to Day
Evaluation GL Transactions, Currency Revaluation
Typically in connection with a month end reporting all accounts are revaluated with the month end exchange rate
Monthly
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Day to Day Registration
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Foreign Currency Registrations
9
Foreign Currency Registrations
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Vendor Invoices AP Transactions
Manual Entered
exchange Rate or Base amount
Auto Exchange Rate Table
Sales or Standard
Auto Exchange Rate Table
Purchase or Standard
Expenses Expense Sheet
Registration
Customer Invoices
AR transactions
Auto Exchange Rate Table Standard
Enter Currency Amount & Currency
Manual Entered
Exchange Rate or Base amount
Expense Amount posted
in Original, Base & Project
currency
Manual Entered
Exchange Rate or Base amount
Invoice Amount posted in
Invoice, Base & Customer currency
Enter Currency Amount & Currency
Enter Currency Amount & Currency
Invoice Amount posted in
Invoice, Base & Vendor
currency
Expense Registrations
Expenses can be entered in different currency per entry. The total will be summarized and paid to the employee in the Base currency.
The entries can be entered with a manual exchange rate or converted from the systems exchange rate table
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Vendor Invoice Registration
Vendor Invoices can be entered in the currency amount and the default currency will be derived from the Vendors account. (Base of Foreign currency)
The currency can be changed to a different currency from the drop down list The amount can be converted from the default exchange rate table which can be a specific
purchase rate or the Exchange Rate can be entered manually.
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Customer Invoice Registration
Customer Invoices can be created in foreign currencies in two ways: The project can be created in a currency different from the base currency and this will then
be the invoicing currency Invoices on Account can be created in a currency different from the project currency - if
allowed in the Invoices on Account system parameters
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Customer Invoice Registration
On a Foreign Currency Invoice both the Invoice amount and the base amount can be displayed
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Hands-On Activity
15
Foreign Currency Registrations Activity 1
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Helpful Tip
16
Vendor invoices can be entered with Currency Amount and Currency in both the Vendor Invoice journal and the Invoice Allocation window.
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Create Customer Payment
17
Customer Payments
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Workspace
AR Transactions
Enter customer info
Enter Currency Amount, Charge
Amount & Currency
Reconcile payment &
Invoice
Customer Payments
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Payments can be entered in a payment journal with both a Base & Currency amount
When only the currency amount is entered the amount will be converted from the standard exchange rate table
Customer Payments
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Currency amounts and currency can also be entered in Customer Open Entry Reconciliation
In the reconciliation window the amount open for reconciliation will be displayed in Base currency
Customer Payments
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The exchange difference can automatically be posted as a cash discount and the amount be fully reconciled.
You can also select partly reconciliation and manually post the difference
Hands-On Activity
22
Foreign Currency Customer Payment Activity 2
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Create Vendor Payment
23
Vendor Payments
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Workspace
Bank Transactions
Create Payment Selection
Edit selection
Create payment
Make payment in Bank either
by file or manually
Vendor Payment
On the Vendor Statement the balance is displayed in both the Vendor and Base currency.
The invoices are displayed in the vendor currency and the original amount which can be
different from the vendor currency.
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Vendor Payment
The payment selection report will typically default to the Base currency but can be changed before print. An Exchange Rate Date can be entered.
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Helpful Tip
If you want to keep payments in foreign currency separated from payments in base currency select the vendor and create payment before creating the payment selection for base currency payments
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Helpful Tip
28
If you want to pay a Vendor - created in base currency - in a foreign currency. Create the payment manually and tell the Bank the currency and the currency amount you want to be transferred.
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Hands-On Activity
29
Create Vendor Payment in currencies Activity 3
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Projects in Foreign Currency
30
Projects in Foreign Currency
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Workspace Projects
Change Currency in Prices
Enter Fixed Exchange Rate
Information
Update Fixed Rates on Projects
Projects in Foreign Currency
Projects can be created in a currency different from the base currency. The currency can be created in two ways:
1. The currency can be changed in the Price tab in the Home section in the Projects workspace. This must be done before any transactions are posted to the project incl. invoicing
2. The currency can be derived from the customer. Note the project can be created in base currency but have a different currency for invoices. This will work for Invoices on account and can be selected at the time of invoice creation. The project must have a system parameter that allows invoicing in foreign currency.
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Projects in Foreign Currency
The Exchange Rates can be fixed on a project in two ways
You can fix the Rate to a specific date in the standard system Exchange Rate table You can fix the Rate with a project specific exchange rate
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Hands-On Activity
34
Projects in Foreign Currency Activity 4
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Monthly Revaluation & Updates
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Print Currency Report
36
Currency Revaluation
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Make Selection Criteria.
Company, Account type
etc.
Info Unrealized Exchange Rate
variances
Enter Statement
Enter currencies
Exchange Rate Sales
Exchange Rate Purchase
Reporting Currencies
Print Report
Create GL entries to post
unrealized entries
Unrealized Exchange variances
posted
Transaction Type
Reversion Date
Currency Revaluation
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Workspace GL
Transactions
Currency Revaluation
Selection Criteria
Select GL Entries
If requested
Statement Date
Print Selection Criteria
Print Currency Report
The revaluation can be created based on a range of selections and with different Exchange Rate Tables for Sales and Purchase.
Note – the report can be created with or without the creation of GL entries
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Hands-On Activity
40
Print Currency Report Activity 5
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Helpful Tip
41
When you select to create GL transactions to adjust the currency you can also create a reverse journal to remove the entries again
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Update Exchange Rate Table
42
Exchange Rate Tables
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Workspace
Currency Setup
Select Exchange Rate Table
Create all Exchange Rates
for new date Enter Rates
Exchange Rate
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Reference Currency
USD
Transaction Currency
GBP
Base Currency
EUR
The exchange rate table is created with a reference currency which is typically the system currency (it can also be Euro).
All currency calculations are based on the reference currency in a triangulation. Which
means all Transaction currencies will be converted via the Reference currency to the Base currency when Base is different from Reference currency.
Exchange Rate Tables
You can create one or more Exchange Rate tables to be used for different purposes defined in the system parameters. Only one table can be applicable for each transaction at any time.
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Hands-On Activity
46
Update Exchange Rate Table Activity 6
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Helpful Tip
47
Exhange Rates can be updated on a daily basis if necessary but should as a minimum be updated once a month to evaluate all open currency accounts.
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Helpful Tip
48
New rates can be added to one or more exchange rate tables at any time by adding new lines in the table. You might need to create the currency code as well.
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Ad Hoc Creation
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Project Pricelist in Foreign Currency
50
Project Pricelist in Foreign Currency
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Workspace Project Cost
Setup Create Pricelist Update Pricelist
Project Specific Prices
Project Pricelist in Foreign Currency
A range of pricelists can be created in different currencies and added automatically to a project from the Customer Account, the Template or added Manually
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Hands-On Activity
53
Project Pricelist in Foreign Currency Activity 7
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Accounts in Foreign Currency
54
Accounts in Foreign Currency
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Workspace Setup
GL, AR & AP
Create Account
GL, AR, AP
Update with
Foreign Currency
GL Accounts in Foreign Currency
Cash Accounts can be created in a foreign currency to replicate a foreign currency account in the bank. A foreign currency is a currency different from the Base Currency selected on the company.
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In Currency you can be selected from the preset list of currencies.
The currency cannot be changed when
entries has been posted to the account.
If Currency Amount is ticked manual entries entered to the account in the General Journal must be made in the currency specified in the field “Currency” above. This may be practical if the account represents a bank account kept in a given currency.
Note: Only accounts where Currency Amount is marked are included in currency reports.
AR Accounts in Foreign Currency
When Customers are created with a foreign currency all projects created will by default inherit the currency and all transactions will be converted and displayed on statements in the selected currency
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All entries to a customer account will be posted to the account in: Standard Currency = the currency
of the account. Base Currency = the currency of
the company Original Currency = the currency of
the entry. Enterprise Currency = the currency
of the system Note: The currency can only be changed if no entries have been posted to the account.
AP Accounts in Foreign Currency
When Vendors are created with a foreign currency all transactions will be converted and displayed on statements in the selected currency. It is also the currency that will be used for the vendor payment.
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All entries to a vendor account will be posted to the account in: Standard Currency = the currency of the
account. Base Currency = the currency of the
company Original Currency = the currency of the
entry. Enterprise Currency = the currency of the
system Note: The currency can only be changed if no entries have been posted to the account.
Hands-On Activity
59
Project Pricelist in Foreign Currency Activity 8
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Helpful Tip
60
If a Vendor issues invoices in different currencies the invoices can be entered and paid from the same vendor account with the same currency. If payments and statements must be in the invoicing currency the Vendor must be created with accounts for each currency,
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Setup Multi company & currencies
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Multi Company with Multi Currency
62
Multi Company with Multi Currency
In a global setup each company can have each own local Currency called Base Currency All entries will be converted to the systems Enterprise Currency At all times GL data can be reviewed and reported in both currencies
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Enterprise Currency: USD
Company 30 Currency: EUR
Company 10 Currency: USD
Company 20 Currency: GBP
Multi Company with Multi Currency
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Workspace
GL Setup
Create Company and add Base Currency
Update with other company information
Multi Company with Multi Currency
In a Global setup with multiple companies the currency is selected at creation. The Company Currency is called Base Currency and is used throughout the system as the reporting currency. It is not possible to change the currency once the company is created.
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Hands-On Activity
66
Multi Company with Multi Currency Activity 9
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Review Currency Setup
67
Currency Setup
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Workspace
Currency Setup
Currencies
Pop-up
Exchange Rate Tables
System Information
Currency Rounding
Review Currency Setup
The Currency Setup has four tabs : Exchange Tate Tables where you can enter one or more tables (see specific chapter) Currencies are pop-up fields where you define which currency you need in the tables Currency Rounding is a table where you can setup a rounding amount for each currency and
specify the unit to handle automatic rounding on invoices, credit-memos and interest notes System Information where you enter the system currency (enterprise) and the Standard unit
used for conversion. (e.g. 1 or 100)
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In System information you can select different tables to be used for sales and purchase
In Currencies you can enter the unit used for each currency
Review Currency Setup
Various Accounts for automatic posting of exchanges rates are created in the companies Posting References. The accounts can be specific for Vendor, Customer, Project & for Unrealized generated amounts.
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Hands-On Activity
71
Review Currency Setup Activity 10
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Helpful Tip
72
If you need a new currency not already in the exchange rate table 1. Enter the code in the pop-up fields in Currencies 2. Select the new code in Exchange Rate tabels and enter the
currency
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Knowledge Check
73
What is original currency? Can you pay vendors in different
currencies from the same account? When can you change currency on a
project or an account? Where do you tell the system which
exchange rate table to use if more than one?
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