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Foreign Currency in Maconomy Maconomy Workspace Client

© 2015 Deltek, Inc. Deltek proprietary, all rights reserved.

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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

3 © 2015 Deltek, Inc. Deltek proprietary, all rights reserved.

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

© 2015 Deltek, Inc. Deltek proprietary, all rights reserved. 4

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.


Currency Types

Maconomy has a range of currency types and the account or customer/vendor currency is used as the basis for valuation


• 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


Day to Day Registration


Foreign Currency Registrations

9

Foreign Currency Registrations


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



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


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.


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


Customer Invoice Registration

On a Foreign Currency Invoice both the Invoice amount and the base amount can be displayed


Hands-On Activity

15

Foreign Currency Registrations Activity 1


Helpful Tip

16

Vendor invoices can be entered with Currency Amount and Currency in both the Vendor Invoice journal and the Invoice Allocation window.


Create Customer Payment

17

Customer Payments


Workspace

AR Transactions

Enter customer info

Enter Currency Amount, Charge

Amount & Currency

Reconcile payment &

Invoice

Customer Payments


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


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


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


Create Vendor Payment

23

Vendor Payments


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.


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.


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


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.


Hands-On Activity

29

Create Vendor Payment in currencies Activity 3


Projects in Foreign Currency

30



Workspace Projects

Change Currency in Prices

Enter Fixed Exchange Rate

Information

Update Fixed Rates on Projects


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.



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


Hands-On Activity

34

Projects in Foreign Currency Activity 4


Monthly Revaluation & Updates


Print Currency Report

36

Currency Revaluation


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



Workspace GL

Transactions


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


Hands-On Activity

40

Print Currency Report Activity 5


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


Update Exchange Rate Table

42

Exchange Rate Tables


Workspace

Currency Setup

Select Exchange Rate Table

Create all Exchange Rates

for new date Enter Rates

Exchange Rate


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.


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.


Hands-On Activity

46

Update Exchange Rate Table Activity 6


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.


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.


Ad Hoc Creation


Project Pricelist in Foreign Currency

50



Workspace Project Cost

Setup Create Pricelist Update Pricelist

Project Specific Prices


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


Hands-On Activity

53

Project Pricelist in Foreign Currency Activity 7


Accounts in Foreign Currency

54

Accounts in Foreign Currency


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.


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


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.


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


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,


Setup Multi company & currencies


Multi Company with Multi Currency

62


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


Enterprise Currency: USD

Company 30 Currency: EUR

Company 10 Currency: USD

Company 20 Currency: GBP



Workspace

GL Setup

Create Company and add Base Currency

Update with other company information


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.


Hands-On Activity

66

Multi Company with Multi Currency Activity 9


Review Currency Setup

67

Currency Setup


Workspace

Currency Setup

Currencies

Pop-up


System Information

Currency Rounding


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)


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


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.


Hands-On Activity

71

Review Currency Setup Activity 10


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


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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