The currency codes provide the ability to post to separate General Ledger Accounts setup in Default Accounts based on currency, and also to allow for the varying currency exchange rates on Inventory Sales and Purchases.
Currency information can be added and deleted in the Currency
Code window in the "General Ledger" parameters on the
Accounting tab of the Configure System
Settings.
An operator must be assigned a Security
Role that allows permission to the Accounting - Currency
Code in order to access this table.
Separate Bank Accounts:
For example, your firm may have both an American and a Canadian
bank account, in order to pay American suppliers in U.S. funds and
Canadian suppliers in Canadian funds. All payments received and
issued will be coded by currency, to ensure that the correct bank
account is impacted.
Separate Accounts Payable Ledgers:
When setting up the vendors, determine the typical currency
required to pay that supplier. Both an American Accounts Payable
ledger and a Canadian Accounts Payable ledger may be retained by
currency in the in Default Accounts.
When paying invoices, computer checks are issued by currency in separate check runs. This ensures that a supplier receives the correct amount, even if the supplier has issued invoices in more than one currency.
Separate Accounts Receivable Ledgers:
When setting up your customers, determine the currency in which the
customer will be required to pay.
Both an American Accounts Receivable ledger and a Canadian Accounts
Receivable ledger may be retained in the Default Accounts. When receiving payment, the
currency is checked to ensure that Canadian and American deposits
are directed to the right bank account automatically.
Note: There are several methods of achieving separate Accounts Receivable accounts in the General Ledger. If separation based on something other than currency is required, contact Texada Support to discuss this further.
The following currencies are setup in the Currency Codes
tables:
Additional currency codes can be entered in Add mode as follows:
The currency exchange rate is used for Inventory Purchases and
Sales to ensure Inventory value is maintained correctly in the
General Ledger.
To include this exchange rate in Inventory Purchases and Sales,
enter the current exchange rate for the currency, and contact
Texada Support to activate the feature Support
Application Parameters, to automatically post the Currency
Exchange, Duty/Brokerage and Freight costs to the G/L.
The G/L account to be used in any currency exchange adjustment is
assigned in Default Accounts.
Any Payments entered against A/R or A/P Invoices do not require currency exchange adjustments. Because the payments default to the same currency as the original invoice, they can be deposited in the appropriate bank for that currency without any exchange adjustment.
Any bank money transfers from one currency to another are done with Miscellaneous G/L Journals. The below example shows a transfer of U.S. funds, when the exchange rate in Currency Codes is set at 1.4, but the actual exchange rate when the transfer is done has changed to 1.39.
ACCT 1001 - U.S. Bank Credit $5000.00 2500 - U.S. Exchange Accrual Credit 2000.00(rate = 1.4) 1000 - Canadian Bank Debit 6950.00 5000 - Gain/Loss U.S. Exchange Debit 50.00(loss because current rate = 1.39)
When applying to the "Bill To" address, the Postal or Zip code
must match the format per the customer's currency setup in Customer Information.
When applying to the "Ship To" address, the Postal or Zip code must
match the format of any currency code, to allow for shipping out of
country.
Note: The mask for the company currency is also respected by the "Address Verification" used by Texada Pay Credit Card payments.
ACTIONS:
Additional actions provided by buttons on
the Currency Codes screen include:
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