The following best practice recommendation for setting up multi-currency vendors is provided for informational and general guidance purposes only. It is not intended as legal, tax, or accounting advice. Organizations should assess their unique operational and regulatory requirements before implementing any changes. We recommend consulting with a qualified accounting professional or financial advisor to ensure compliance with applicable laws, standards (such as IFRS or GAAP), and internal policies. Neither the author nor the provider of this recommendation accepts any liability for actions taken or omitted based on the contents of this guidance.
1. Select the Currency Rate program from the Accounting section.
2. Click "Add Currency Rate"
3. Enter the name of your currency exchange type.
4. Click the "Conversion Rate" field and enter the conversion rate.
5. Click the "Gain/Loss Exchange Account" field and enter the Gain/Loss account number. If the GL accounts are not setup yet go to step 7 to see setup instructions.
6. Click "Save" to save your currency exchange rate.
7. We recommend three GL accounts for this setup. Add each account and follow the setup process below.
Bank Currency Exchange- Asset
Gain/Loss on Currency- Expense
AP Currency Account- Liability
8. Within the Bank Currency account, ensure the currency type is chosen from the drop down menu and enter the Gain/Loss account number into the "Currency Exchange Account" field.
9. The Gain/Loss Account is an expense account and does not require the currency type to be selected.
10. Within the AP Currency Account, ensure the currency type is chosen from the drop down menu and enter the Gain/Loss account number into the "Currency Exchange Account" field.
This ensures the currency variances are posted to that account.
11. Within the AP invoice Entry the gain or loss will automatically calculate one the invoice is distributed to the associated expense/cost account.
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