Foreign Currency in Maconomy

Foreign Currency in Maconomy Maconomy Workspace Client

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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

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 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 Enterprice Currency Parent or server currency. All companies roll up to this currency. Can only have one in Maconomy. Base Currency Companies functional or operational currency. Transactional Currency Currency of the transaction GL, AR, AP, Project. Account Currency Currency of GL, Customer and Vendor accounts Reporting Currency Currency and date that for display on reports Project /Invoicing Currency Currency fixed on Project Invoicing Invoices on Account different from project currency Project Pricelist Sales prices in foreign currencies 6

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 7

Day to Day Registration

Foreign Currency Registrations 9

Foreign Currency Registrations Expenses Expense Sheet Registration Customer Invoices AR transactions Vendor Invoices AP Transactions Enter Currency Amount & Currency Enter Currency Amount & Currency Enter Currency Amount & Currency Manual Entered Exchange Rate or Base amount Auto Exchange Rate Table Standard Auto Exchange Rate Table Sales or Standard Manual Entered Exchange Rate or Base amount Auto Exchange Rate Table Purchase or Standard Manual Entered exchange Rate or Base amount Expense Amount posted in Original, Base & Project currency Invoice Amount posted in Invoice, Base & Customer currency Invoice Amount posted in Invoice, Base & Vendor currency 10

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 Foreign Currency Registrations Activity 1 15

Helpful Tip Vendor invoices can be entered with Currency Amount and Currency in both the Vendor Invoice journal and the Invoice Allocation window. 16

Create Customer Payment 17

Customer Payments Workspace AR Transactions Enter customer info Enter Currency Amount, Charge Amount & Currency Reconcile payment & Invoice 18

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 2013 Deltek, Inc. Deltek proprietary, all rights reserved.

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 Foreign Currency Customer Payment Activity 2 22

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 24

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 2013 Deltek, Inc. Deltek proprietary, all rights reserved. 27

Helpful Tip 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. 28

Hands-On Activity Create Vendor Payment in currencies Activity 3 29

Projects in Foreign Currency 30

Projects in Foreign Currency Workspace Projects Change Currency in Prices Enter Fixed Exchange Rate Information Update Fixed Rates on Projects 31

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.

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

Hands-On Activity Projects in Foreign Currency Activity 4 34

Monthly Revaluation & Updates

Print Currency Report 36

Currency Revaluation Transaction Type Reversion Date Exchange Rate Sales Exchange Rate Purchase Make Selection Criteria. Company, Account type etc. Info Unrealized Exchange Rate variances Enter Statement Enter currencies Print Report Create GL entries to post unrealized entries Reporting Currencies Unrealized Exchange variances posted 37

Currency Revaluation Workspace GL Transactions Currency Revaluation Selection Criteria Select GL Entries If requested Statement Date Print Selection Criteria 38

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 Print Currency Report Activity 5 40

Helpful Tip When you select to create GL transactions to adjust the currency you can also create a reverse journal to remove the entries again 41

Update Exchange Rate Table 42

Exchange Rate Tables Workspace Currency Setup Select Exchange Rate Table Create all Exchange Rates for new date Enter Rates 43

Exchange Rate 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. Reference Currency USD Base Currency EUR Transaction Currency GBP 44

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.

Hands-On Activity Update Exchange Rate Table Activity 6 46

Helpful Tip 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. 47

Helpful Tip 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. 48

Ad Hoc Creation

Project Pricelist in Foreign Currency 50

Project Pricelist in Foreign Currency Workspace Project Cost Setup Create Pricelist Update Pricelist Project Specific Prices 51

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

Hands-On Activity Project Pricelist in Foreign Currency Activity 7 53

Accounts in Foreign Currency 54

Accounts in Foreign Currency Workspace Setup GL, AR & AP Create Account GL, AR, AP Update with Foreign Currency 55

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 Project Pricelist in Foreign Currency Activity 8 59

Helpful Tip 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, 60

Setup Multi company & currencies

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 Company 10 Currency: USD Company 20 Currency: GBP Enterprise Currency: USD Company 30 Currency: EUR

Multi Company with Multi Currency Workspace GL Setup Create Company and add Base Currency Update with other company information 64

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.

Hands-On Activity Multi Company with Multi Currency Activity 9 66

Review Currency Setup 67

Currency Setup Workspace Currency Setup Currencies Pop-up Exchange Rate Tables System Information Currency Rounding 68

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) 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.

Hands-On Activity Review Currency Setup Activity 10 71

Helpful Tip 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 72

Knowledge Check 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? 73

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