Multi-Currency and Accounts Payable
Vendors are assigned one currency to record Accounts Payable and Purchase Order transactions.
When the Multi-Currency module is enabled, the system will allow a vendor to be assigned an 'override currency' when the vendor conducts business in a currency that differs from the reporting currency. By rule, all transactions for a vendor with an override currency shall be processed in that other currency. This override currency will be known as the 'Vendor currency'.
Processing Rules
- Transactions originating in Accounts Payable and Purchase Order will be recorded in these modules using the vendor currency. Amounts will be translated into the reporting currency for General Ledger, Job Cost (and others in later phases).
- Transactions posting to Accounts Payable from other modules (that is, Payroll) will be recorded using the reporting currency. No translation into the vendor currency will occur.
- The exchange rate is determined and stored when the transaction is updated.
- When processing payments, the software will calculate gain or loss from currency fluctuations and post differences to the General Ledger. The G/L date assigned to the invoice and the check date are used as the transaction dates for exchange rate gain/loss calculations. The gain or loss is booked to the G/L code defined on the account code itself.
- By rule, there are no gains or losses on currency transactions on instant manual checks and on credit card purchases as the invoice G/L date and check date will be the same.
- By rule, there is no currency gain or loss when voiding a check. This means that the software will reverse the A/P check out exactly as it was written and also reverse out any currency gains or losses previously booked to the G/L.
Gain/Loss Formula
(FX rate on Invoice less the FX rate on Check date) X Amount paid in vendor currency.
Aged Paybles Report
The A/P Aged Payables Report is already in each vendor's currency. Running it for ALL vendors will comingle different currencies together, making the report meaningless. Selecting one currency will select all transactions for that currency.
G/L Distribution Report
The G/L Distribution History Report will allow the user to print information for vendors assigned to a particular override currency, selecting either to see values in that currency or translated to the Reporting currency.
Merge Vendors
Protection has been added to the Change Vendor Code utility so that when 'merging vendors', users will be prevented from merging vendors assigned different currencies.
Copy Vendors to Another Company
Special handling will be added to the Copy Vendors to Another Company utility when copying vendors among Spectrum companies that use different reporting currencies.
Reports
Aged Payables Report
The A/P Aged Payables Report is already in each vendor's currency. Running it for ALL vendors will comingle different currencies together, making the report meaningless. Selecting one currency will select all transactions for that currency.
G/L Distribution Report
The G/L Distribution History Report will allow the user to print information for vendors assigned to a particular override currency, selecting either to see values in that currency or translated to the Reporting currency.
Merge Vendors
Protection has been added to the Change Vendor Code utility so that when 'merging vendors', users will be prevented from merging vendors assigned different currencies.
Copy Vendors to Another Company
Special handling will be added to the Copy Vendors to Another Company utility when copying vendors among Spectrum companies that use different reporting currencies.
