The use of Multi-Currency is fully integrated into Centralized Order Entry and all of the following Accounting functions. This page will strictly cover just the use of Multi-Currency within each of these functions. Several scenarios will be used to illustrate how the functionality works using the Multi-Currency feature.For more information on how to use the entirety of these functions, go to their specific topics.
All Transactions and Related Transactions are tracked in both the Main Currency and the Transaction Currency. Your merchant account must be configured to handle multiple currencies as well.
The Main Currency of the Business Unit in all of the following functions and examples is US Dollars.
Important! Click here to view Multi-Currency Transaction Scenarios
Question?...Why do the products above, that are the same, have different prices though they were purchased on the same day with the same exchange rate?...Answer: Different PRICES were added to the Product Profile, one of which in Taiwan Dollars (TWD).
The exchange rate will be based on the transaction date of the invoice.
All Payments are made in the Transaction Currency ONLY. If entering a payment in a currency other than the Main Currency, the proper exchange rate will apply.
If a Payment is made at the time of the order, in a currency other than the Main Currency, no Realized Gain/Loss will be recognized. In the below examples, a Realized Gain/Loss will be recognized however, because the transaction date and payment date are different.
The currency drop-down list has been added to the Add - Payments page. If you select a specific invoice from the Individual Profile page and click the Add Payment icon, the Add - Payments page displays with the balance due in the Transaction Currency only and the Currency drop-down list is read only.
If you click the Add Payment icon from the Actions Bar on the Individual Profile page, you can select a specific currency. Selecting a specific currency will filter only invoices of that particular currency that are returned during a search.
Once an invoice has been selected, any other invoice of that same currency can also be paid. Only Credits in the Transaction Currency can be applied to an invoice.
This applies to a Return or Cancellation of an order that has NOT been paid. Since the return/cancellation payment is in the Transaction Currency, the currency drop-down list does not display on the return (cancel) page. However, since the transaction is tracked in both the Transaction Currency and Main Currency, the G/L accounting functions are executed within the application.
This applies to a Return or Cancellation of an order that has ALREADY been paid. The is executed like the Return/Cancellation Payments except if the product has already been shipped and/or returned, it is also returned to inventory.
This is done using the Add - Credit form (Credit group item). You can manually select the currency of a credit when it is added to an Individual's account.
A Refund will be in the same currency as the associated Credit. Since the transaction is tracked in both the Transaction Currency and Main Currency, the G/L accounting functions are executed within the application.
Scenario: There is an open invoice in Pounds (£) in the amount of £3 that is 120 days out on your aging report and you decide to write-off the amount as a bad debt.
All write-offs, for any reason, can only be created in the Transaction Currency. However, all write-offs are tracked in both the Main Currency and the Transaction Currency. When a write-off is in a currency other than the Main Currency, the exchange rate at the time of the original transaction will be used therefore no Realized Gain/Loss will be recognized.
You can write off an invoice or a batch but ensure that you select a batch from a Business Unit that supports that currency.
The Add - Write Off page also displays the balance due i.e. the amount you will be writing off, in that Transaction Currency.
You can select the currency of a Miscellaneous Transaction but it will be converted at the time the transaction is created. The currency you select must be supported by the correct Business Unit which in turn, determines which batches populate the drop-down list and which G/L Accounts are available when adding the details.