Multi-Currency Definitions

This is the main currency the system runs and reports in. Normally AUD in Australia, NZD in New Zealand, etc. The general ledger always operates in the home currency. An option to report in another currency converts the general ledger account balances to the other currency at a point in time (as at the rate date), and displays the report on screen or as a printed report/document.

This is the currency shown on the source document, eg. a vendor’s invoice in Japanese Yen (foreign exchange on purchase order) or a sales invoice from Jim2 in USD (foreign exchange on sell).

The date the foreign currency transaction occurred.

The factor which, when computed with the rate operator (see below) and the source currency, will provide the equivalent home currency amount. Currency rates are recorded in the Currency Rate table.

Multiply or divide as the case may be from currency to currency, ie. AUD1 x 1.0420 = NZ$1.042.

For example, daily, monthly, weekly. The user enters a rate, normally from a predefined list depending on what function they are performing in the system. Some foreign exchange on purchase order examples are:

▪Entering a purchase order – use a daily or monthly rate.

▪Paying a vendor invoice – use the actual rate the bank provides for the foreign exchange transaction.

▪Revaluing foreign currency creditors at month end – monthly rate.

▪Revaluing foreign currency creditors at year end – yearly rate.

▪Simply recording the rate used at close of year – yearly rate.

The place a user would go to find the prevailing rate on the rate date, eg. the Australian Taxation Office, the Reserve Bank of Australia or The Financial Review.

Is the maximum amount that overrides the rate entered without being warned – it is a check to guard against an error in the rate entry.

The setup code for the various defined currencies the system will allow. For example:

This is the table that defines the interaction between two currencies. For example, to convert USD100 to an AUD equivalent, divide (rate operator) the number of USD by the rate on the rate date.

If an exact method is chosen, the user is forced to enter a rate for each rate date/rate type, otherwise the user can enter a rate whenever, and the system will choose the latest earlier rate (lower) or earliest later rate (higher) it finds – automatically.