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MULTIPLE CURRENCY AND GENERAL LEDGER REPORTING

MULTIPLE CURRENCY AND GENERAL LEDGER REPORTING. Presented by MAUREEN HUNT QAD Global Implementation Services. What We Need To Know. Currencies and Exchange Rates Base Currency Entity Currency Account Currency Transaction Currency

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MULTIPLE CURRENCY AND GENERAL LEDGER REPORTING

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  1. MULTIPLE CURRENCY AND GENERAL LEDGER REPORTING Presented by MAUREEN HUNT QAD Global Implementation Services

  2. What We Need To Know • Currencies and Exchange Rates • Base Currency • Entity Currency • Account Currency • Transaction Currency • Foreign Currency Transactions effect General Ledger Reporting

  3. Currency Maintenance

  4. Exchange Rate Maintenance

  5. BASE CURRENCY • Company Base Currency is used for Financial Reporting • Exchange Rates are defined in terms of this Base Currency

  6. BASE CURRENCY Once Base Currency has been defined, it should not be changed

  7. What is an Entity? • Entity is a financial division of a company • Entity defines a division maintained for Financial Reporting Requirements • Entity is defined for a separate Tax Reporting Division of a company

  8. Entity Currency • Each Entity is assigned a three-digit code that defines the Entity’s Base Currency • In Multiple Currency Environments this code determines if a currency translation is performed • Translation Adjustment can appear as an item on either the Balance Sheet or Income Statement

  9. Entity Code Maintenance Screen Entity Currency determines if translation needs to occur for Financial Reporting

  10. Account Maintenance • Accounts are used to group amounts for Financial Reporting • Account Codes are defined in Menu 25.3.13, Account Code Maintenance

  11. Account Attributes • Account Type • Account Currency • Account Status • Active • Inactive • Format Position • Currency Translation Index

  12. Account Maintenance Only Balance Sheet Accounts can be defined in a Foreign Currency Imported Transactions are translated based on the Translation Index

  13. Currency Translation Indexes (25.3.13) • Index Description Effects • 1 Current Transactions are valued based on exchange rates for the transaction’s period ending date. • 2 Weighted Average Rates for all dates in the effective date range specified during transaction export are averaged over the number of days in the range (e.g., if transactions were exported for January 1- 31, MFG/PRO adds up the rates for January 1, January 2, and so on and then divides them by 31). • 3 Simple Average Rates for the first and last date in the effective date range specified during transaction export are totaled and then divided by 2 (e.g., if transactions were exported for January 1-31, MFG/PRO averages only the rates for January 1st and 31st). • 4 Historical Transactions are valued at the rates in effect on the transaction effective date. (Transactions for these accounts must be exported in detail!) • 5 User-Defined Transactions are revalued at a set rate for the accounting period, as defined in Translation Exchange Rate Maintenance (25.19.1). FIN21090

  14. Transaction Currency • Transactions within MFG/PRO can be processed in any Currency defined in the database • Sales Orders (Sales Quotes) • Purchase Orders • Accounts Receivable • Accounts Payable • General Ledger Transactions

  15. Bank Maintenance

  16. Customer Address Record Default currency on for all Customer Transactions

  17. Supplier Address Maintenance Default currency on all Supplier Transactions

  18. Sales Order (Sales Quote) Currency defaults from Customer Record

  19. Spot Rate on Sales Order Allows user to define exchange rate on transaction

  20. Sales Order Trailer Total of Order is expressed in transaction currency

  21. Invoice Post to Accounts Receivable • Post Updates: • AR DR/CR Memos • Sales Tax Journal • Commissions • Invoice History • Sales Analysis • GL

  22. Accounts Receivable

  23. Accounts Receivable Payments

  24. Exchange Tolerance Company Currency = USD Exchange Rate is 5 GBP to 1 USD Exchange Tolerance = 5.00% (If Customer Pays in USD) Invoice Amt 100 GBP (20 USD) Accepted: Payment = 19, 20, or 21 USD Rejected: Payment < 19 or > 21

  25. Realized Gain/Loss on Sale Gain Loss GBP to USD GBP to USD 6 5 5 4 FIN09060 Accounts Receivable Gain/Loss

  26. GL Transaction Summary Multiple Currencies

  27. POs Vouchers Payments Multiple Currencies in Accounts Payable

  28. Accounts Payable

  29. Purchase Gain Loss on Vouchers

  30. Accounts Payable Payments

  31. Exchange Gain/Loss on Payments

  32. GL Transaction Summary, AP Multiple Currencies

  33. General Ledger Transactions and Reporting in Multi Currency

  34. USD GL Transactions in Multiple Currencies

  35. Multi-Currency GL

  36. Foreign Exchange Revaluation

  37. Unrealized Gain/Loss Calculation

  38. Multicurrency GL (Multiple Databases) Source Database (All Period-End Activities Complete) Export Transactions to File File Transfer Consolidation Database Close Period to GL Calculate/Post Unrealized Gain/Loss Revalue/Post Imported Transactions Import/Post Transactions Print Period Reports FIN21050

  39. Currency Translation

  40. Database Consolidation

  41. Imported Transaction Revaluation

  42. Balance Sheet Reporting

  43. Trial Balance

  44. Income Statement

  45. Questions ?

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