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Setting Up Additional Reporting Currencies

There are four steps that you should perform to set up the additional reporting currency.

ShowSpecify G/L Accounts for Posting Exchange Rate Adjustments

You must specify four G/L accounts in the following fields for the additional reporting currency in the Currencies window:

Residual amounts can arise when the program rounds debit and credit amounts that have been converted from LCY to an additional reporting currency.

ShowSpecify Exchange Rate Adjustment Method for All G/L Accounts

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.

  1. Open the Chart of Accounts.

  2. Select the relevant Account and press SHIFT + F5 to display the G/L Account Card window.

  3. Go to the Reporting tab in the G/L Account Card window.

  4. 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:

Note

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.

  1.  Close the G/L Account Card window.

ShowSpecify Exchange Rate Adjustment Method for VAT Entries

  1. Access General Ledger Setup.

  2. Go to the Reporting tab in the General Ledger Setup window.

  3. 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:

 

ShowActivate the Additional Reporting Currency

  1. Access General Ledger Setup.

  2. Go to the Reporting tab in the General Ledger Setup window.

  3. Click the AssistButton in the Additional Reporting Currency field and select the additional currency you wish to report in from the Currencies window.

  4. 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.

  1. 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.

  1. 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:

In addition, all future entries of the same type will have amounts recorded in both LCY and the additional reporting currency.

Note

The Add. Reporting Currency will only be activated after you have clicked the OK button in the Adjust Add. Reporting Currency batch job.

Related Topics

About Using Additional Currencies



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