3.0 Currency Exchange Setup for AR - Standard

Currency exchange setup for Accounts Receivable:

Currency Setup – Administration

Designate a Currency type name, the exchange rate, and then enter the Gain/Loss exchange account number. You can come back and add the account number later if it has not been created yet.  This account is used for both AR and AP postings using that currency.

Chart of Accounts

First, create the GL account for the currency exchange.   You will also need a bank account GL in the foreign currency, as well as an AR account in the foreign currency.

The currency gain/loss account will be an expense account, and does not need a currency type designated. It is used for both Accounts Payable and Accounts Receivable postings.

The AR account set up with currency will be an asset,  and will need to have the currency type designated. It will need to have the gain/loss exchange account entered in the “currency exchange field” so that Softbase will post the currency variance to that account.

The bank account set up in the foreign currency will be an asset, and will need to have the currency type designated. It will need to have the gain/loss exchange account entered in the “currency exchange field” so that Softbase will post the currency variance to that account.

Branch-

In your branch setup, you will need to select the currency type you have just set up and enter the AR account for that currency type in the record and save.  See below.  

Customers-

Identify any customers that will utilize currency, and set their currency type in the customer record as needed.

When opening a sales document to that customer, then, the currency type will auto-populate based on this field and will pull in the current exchange rate.  It will also post the AR account set up for that currency type and post the variance to the currency exchange account.

When you receive payment for the Invoiced Work Order you would use AR Deposits to select the Invoice that is being paid and ensure to select the Cash Account that is setup with the Currency Type that is associated with the Invoiced Work Order, otherwise you will receive a warning and not be allowed to post.  

The amount you are receiving is in the foreign currency and when selecting to be paid you will see the entries to the Currency Exchange Accounts that will offset it for the Cash Account and AR Account.