Multi-Curency Setup
ATTC Multi-Currency Setup
Summary
This document explains the setup and basic use of the multi-currency system. Including setup of the Multi-Currency Module, GL Setup – GL Defaults and Revalue functionality within EIQ. NOTE – you must have the G/L Account structure setup for currency and the Accounts must contain the segment for currency.
Multi-Currency Module
Found on the System Setup Tab of EIQ
Make sure that when you are setting up the Module you have the following.
- For Each Currency you should have a Currency – Spot Rate of 1 to Same Currency
- For Each Currency that you are going to be paying using USD $ you will need to create a Foreign to Native relationship Currency – Spot Rate (at current) to USD
- If you will be going the opposite way PO or AP in USD but Paying receiving in foreign you will need to create the USD to Spot Rate to Foreign translation
Example of Native to Native, this is the same as CAD to CAD or YEN to YEN etc.
Translation between YEN to USD Example
Field Name | Usage |
Currency Code | The currency being Defined |
Description | Name of the Currency Translation |
Symbol | The currency Symbol – this is optional |
Spot Rate | Should be 1 for Same to Same but the spot rate for the Same to Different |
GL Value | This is plug value for the GL Account |
Native Currency | Typically the Currency that the plant is using |
Use Daily Spot Rate Table for Transactions | Should be Checked |
RATE TAB | Not USED! |
Updating the Spot Rate
To update the spot rate you will need to be in Multi Currency Module and select the Foreign to Native that needs to be updated. (Foreign to Foreign)
- Make sure that Use Daily Spot Rate is Checked
- Enter in the New Spot Rate into the Spot Rate Field
Viewing the Spot Rate History
Accounting G/L and System Setup
You need to make sure that you have the following setup for where you will using multi-currency transactions. Note not all types are required if you only Purchase in a foreign currency you will not need all of these.
- Accounts Payable
- Accounts Receivable
- Cash
- Contra Accounts for the Above - Typically named F/X at the end with the currency included in the name. IE AP Canadian FX –Note these should be Balance Sheet Accounts
Account Type Maintenance you will need to have a sub-type group created for each Currency you are working in. These will hold the Account and the offsetting F/X account
Note the assigning of the F/X Account to the Sub account Type
Setting up the Default Account in System Parameters
Spot Rate Examples
Native Currency is US Dollar. You want to convert to Canadian Dollars. The exchange rate is as follows:
1 USD = 1.477 CAD Spot Rate is 1/1.477 =.68
Native Currency is Canadian Dollar. You want to convert to US Dollars. The exchange rate is as follows:
1 CAD =.677 USD Spot Rate is 1/.677 = 1.48
Revalue at Month End
EIQ has functionality to do a Cost-Revalue, please see the EIQ help file for more information on the use of this functionality.