INT 10 Managing Your MultiCurrency Payables and Receivables

INT 10 Managing Your Multi-Currency Payables and Receivables #NAVUGsummit

Your Presenter Amanda Mayer Global Finance Controller – Corporate, Ellsworth Corporation amayer@ellsworth. com #NAVUGsummit 2

Agenda • Enter and track vendors and customers easily with currencies. • System generated exchange gains and losses (no manual calculations required. • Change a particular order on the fly for new currency requirement. #NAVUGsummit 3

Content • Setup • General Ledger • Currencies • Customers / Vendors • Purchasing • • • Creating a PO Receiving against the PO Vouchering the Invoice Revaluation of outstanding invoices – GL to Sub-ledger reconciliation. Payment of the Invoice – recognition of exchange. #NAVUGsummit 4

SETUP #NAVUGsummit 5

General Ledger Setup • Home currency = blank • Setup LCY code – USD • Appln. Rounding Precision = amount up to which exchange / gain or loss will be recorded. #NAVUGsummit 6

Currency Table Card • Unrealized Gain / Loss –revaluation entries post to these accounts • Realized Gain / Loss – final settlement of foreign currency transactions post here #NAVUGsummit 7

Exchange Rate Table • Base currency (USD) is 100. 00 • Foreign currency (EUR) is 100. 00 * current exchange rate (i. e. 100*1. 2632) • Using 100 instead of 1 increases the accuracy of FX calculation #NAVUGsummit 8

Payables Receivables Setup Fields • Setup is the same • Appln. Between Currencies = All • Allows system to automatically record exchange gain / loss #NAVUGsummit 9

Vendor Customer • Setup is the same • Foreign Trade tab = Currency Code • Can also be setup on an individual invoice sales order if not always the same currency. #NAVUGsummit 10

Things to Remember • PO SO issued in a foreign currency (i. e. EUR) • Receipts Shipping done against a foreign currency PO SO • Invoice MUST be in foreign currency • If using “Get Receipt Lines” (PO) – cannot change once the lines have been received against. • If posting directly from a foreign currency PO, a foreign currency invoice will be created. #NAVUGsummit 11

ENTERING A PURCHASE ORDER #NAVUGsummit 12

Entering a Purchase Order 1, 000 (EUR)*1. 2632 = $1, 263. 20 #NAVUGsummit 13

Receiving Inventory • Item posts to the GL at Standard Cost • Expected Cost Posting to G/L must be checked in Inventory Setup #NAVUGsummit 14

Currency Calculation on PO • Amt. Rcd. Not Invoiced per item is $1, 275. 10 (1, 000 EUR * 1. 2751) #NAVUGsummit 15

Processing the Invoice #NAVUGsummit 16

General Ledger Entries Payable to vendor is $1, 300 per item ($2, 600/2) is 1, 000 EUR * 1. 30 #NAVUGsummit 17

Aged Accounts Payable – Next Month • GL is equal to last posted amount (from invoice). • Aging is equal to 1, 000 * 1. 28123 * 2 #NAVUGsummit 18

Updating the GL to Match the Aged Payables #NAVUGsummit 19

Unrealized Gains Losses • Accounts Payable and Unrealized Gain Loss is updated for the difference between the original exchange rate and the exchange rate at month end (1. 30 – 1. 28123) * 1, 000 * 2 = $37. 54 #NAVUGsummit 20

Payment to Vendor Payment to EUR vendor against a USD Bank Account (tolerance set to $10) Last exchange rate in the system is 1. 28123 but bank rate is 1. 2775 #NAVUGsummit 21

Realized Gains Loss Unrealized gains / losses are moved at payment time to realized gains / losses. The application rounding of $7. 46 is posted to an account of your choice. This is setup in a separate account, but it is common to also post to exchange gain / loss. #NAVUGsummit 22

DEMO #NAVUGsummit 23

QUESTIONS TO ASK #NAVUGsummit 24

Questions to Ask • How often do we need or want to update currency rates? • What type of transactional activity is there? • How accurate do we need or want to be? • What is our tolerance for rounding on currency applications? #NAVUGsummit 25

Thank You! Don’t Forget: • Complete your survey now • Submit your questions for Microsoft to townhall@navug. com • Download slides and resources from navug. com > NAVUG Summit 2014 community • Visit the I Love NAV booth 942 #NAVUGsummit 26