There are four steps that you should perform to set up the additional reporting currency.
You must specify four G/L accounts in the following fields for the additional reporting currency in the Currencies window:
Realized G/L Gains Account - The G/L account to which the program will post exchange rate gains for currency adjustments between LCY and the additional reporting currency.
Realized G/L Losses Account - The G/L account to which the program will post exchange rate losses for currency adjustments between LCY and the additional reporting currency.
Residual Gains Account -The G/L account to which the program will post residual amounts that are gains if you post in the general ledger application area in both LCY and an additional reporting currency.
Residual Losses Account -The G/L account to which the program will post residual amounts that are losses if you post in the general ledger application area in both LCY and an additional reporting currency.
Residual amounts can arise when the program rounds debit and credit amounts that have been converted from LCY to an additional reporting currency.
For each G/L account, you need to specify how G/L amounts for that account will be adjusted for exchange rate fluctuations between LCY and the additional reporting currency.
Open the Chart of Accounts.
Select the relevant Account and press SHIFT + F5 to display the G/L Account Card window.
Go to the Reporting tab in the G/L Account Card window.
Select the correct method in the Exchange Rate Adjustment field.
If you post in an additional reporting currency, you specify in the Exchange Rate Adjustment field how this G/L account will be adjusted for exchange rate fluctuations between LCY and the additional reporting currency. Exchange rate gains and losses are first posted when you run the Adjust Exchange Rates batch job. In that batch job, the program finds the adjustment exchange rate in the Currency Exchange Rates window and then compares the amounts in the Amount and Additional-Currency Amount fields on the G/L entry to determine if there is an exchange rate gain or loss. The batch job uses the option you select in the Exchange Rate Adjustment field to determine whether to calculate and post exchange rate gains or losses for G/L accounts.
There are three options to choose from:
No Adjustment - The program assigns this option as a default. No exchange rate adjustment is made to the G/L account.
Adjust Amount - If you select this option, the LCY amount will be adjusted for any exchange rate gains or losses. The program will post any exchange rate gains or losses to the G/L account (the Amount field) and to the accounts you specified for gains or losses in the Realized G/L Gains Account or Realized G/L Losses Account fields in the Currencies window.
Adjust Additional-Currency Amount - If you select this option, the additional reporting currency will be adjusted for any exchange rate gains or losses. The program will post any exchange rate gains or losses to the G/L account (the Additional-Currency Amount field) and to the accounts you specified for gains or losses in the Realized G/L Gains Account or Realized G/L Losses Account fields in the Currencies window.
The No Adjustment option should be selected if the exchange rate between the LCY and additional reporting currency is always fixed. The final two options should be chosen if the exchange rate between the local currency and the additional reporting currency is variable.
Close the G/L Account Card window.
Access General Ledger Setup.
Go to the Reporting tab in the General Ledger Setup window.
Select the required method in the VAT Exchange Rate Adjustment field.
If you post in an additional reporting currency, you can specify in the VAT Exchange Rate Adjustment how the accounts set up for VAT posting in the VAT Posting Setup window will be adjusted for exchange rate fluctuations between LCY and the additional reporting currency. When you run the Adjust Exchange Rates batch job, the program finds the adjustment exchange rate in the Currency Exchange Rate window and then compares the amounts in the Amount and Additional-Currency Amount fields on the VAT entry to determine if there is an exchange rate gain or loss.
The batch job uses the option you select in this field to determine how to post exchange rate gains or losses for VAT accounts.
You have the same three options as with G/L entries but in this case the entries adjusted will be the VAT entries:
No Adjustment - The program assigns this option as a default. No exchange rate adjustment is made to the VAT account.
Adjust Amount - If you select this option, LCY will be adjusted for any exchange rate gains or losses. The program will post any exchange rate gains or losses to the VAT account (the Amount field) and to the accounts you specified for gains or losses in the Realized G/L Gains Account or Realized G/L Losses Account field in the Currency window.
Adjust Additional-Currency Amount - If you select this option, the additional reporting currency will be adjusted for any exchange rate gains or losses. The program will post any exchange rate gains or losses to the VAT account (the Additional-Currency Amount field) and to the accounts you specified for gains or losses in the Realized G/L Gains Account or Realized G/L Losses Account field in the Currencies window.
Access General Ledger Setup.
Go to the Reporting tab in the General Ledger Setup window.
Click the AssistButton in the Additional Reporting Currency field and select the additional currency you wish to report in from the Currencies window.
Click OK to close the Currencies window.
The program now displays a confirmation message describing the effects of selecting (and activating) the additional reporting currency.
Click Yes to confirm that you wish to activate the currency as the additional reporting currency.
The program now opens the Adjust Add. Reporting Currency batch job. This batch job converts LCY amounts on existing entries to the additional reporting currency. The batch job uses a default exchange rate copied from the exchange rate that is valid on the work date in the Currency Exchange Rates window.
Residual amounts that arise on conversion of LCY to additional reporting currency are posted to the residual gains and losses accounts specified in the Currencies window. The posting date and document number for these entries is the same as the original G/L entry. Once all these residual entries are posted, the batch job then posts a rounding entry on the closing date of each closed year to the retained earnings account. This is to ensure that the ending balance of the income accounts for each closed years is 0 in both LCY and the additional reporting currency.
Click OK to run the batch job.
After running this batch job, amounts on the following existing entries will be in both LCY and in the additional reporting currency:
G/L Entries
Item Application Entries
VAT Entries
Job Ledger Entries
Value Entries
Production Order Lines
Prod. Order Ledger Entries
In addition, all future entries of the same type will have amounts recorded in both LCY and the additional reporting currency.
The Add. Reporting Currency will only be activated after you have clicked the OK button in the Adjust Add. Reporting Currency batch job.
About Using Additional Currencies