Multicurrency Functionality: General Information

To start working with multiple currencies, you have to configure this functionality in MYOB Advanced. This chapter describes how to prepare for the configuration and how to perform configuration that meets your business needs.

Learning Objectives

In this chapter, you will learn how to do the following:

  • Enable the required system feature
  • Review the base currency and configure foreign currencies
  • Manually configure a foreign currency

Applicable Scenarios

You configure the multicurrency functionality if your company works with foreign vendors and customers and you want to perform the following processes in MYOB Advanced:

  • Maintaining the actual exchange rates for foreign currencies used in the system
  • Maintaining bank accounts denominated in a foreign currency
  • Creating and processing documents in a foreign currency
  • Estimating unrealized gains and losses by revaluing open AP and AR documents
  • Revaluing bank account balances
  • Translating financial statements into a foreign currency to meet reporting needs

Scope of the Multicurrency Functionality in MYOB Advanced

The following subledgers and functional areas of MYOB Advanced support the processing of documents and transactions in foreign currencies:

  • General ledger
  • Cash management
  • Accounts payable
  • Accounts receivable and contract management
  • Taxes (you can report taxes in a currency other than the base currency)
  • Sales orders
  • Purchase orders
  • Purchase requisitions
  • Time and expenses

Transactions can be processed in the base currency only in functionality related to fixed assets, deferred revenue, inventory, and project accounting in MYOB Advanced.

Workflow of the Implementation of the Multicurrency Functionality

To implement the multicurrency functionality in MYOB Advanced, you perform the following general steps:

  1. On the Chart of Accounts (GL202500) form, you create the accounts that will be used in multicurrency operations. For more information, see General Ledger: Chart of Accounts.
  2. If subaccounts are used in your system and the Allow Adding New Values On the Fly check box is cleared for the SUBACCOUNT segmented key on the Segmented Keys (CS202000) form, you use the Subaccounts (GL203000) form to create the subaccounts that have been planned for the foreign currencies. For details on subaccounts, see Subaccounts: General Information.
  3. On the Currencies (CM202000) form, you specify the accounts the system will use for recording rounding gains and losses, and the accounts the system will use for recording realized gains and losses. For details, see Multicurrency Functionality: Currency Rounding Rules.
  4. On the Currencies form, you configure the foreign currencies to be used in the system. For an example with instructions, see Multicurrency Functionality: Implementation Activity.
  5. Optional: On the Currency Rate Types (CM201000) form, you create each of the planned rate types. For details, see Configuration of Rate Types and Rates: General Information.
  6. On the Currency Rates (CM201000) form, you define the effective exchange rates to be used by default in the created transactions and documents. For details, see Configuration of Rate Types and Rates: To Configure Rates.
  7. You define denominated accounts on the Chart of Accounts form. For details, see Denominated Accounts.
  8. Optional: On the Automation Schedules (SM205020) form, you set up a schedule for the system to automatically update the exchange rates. For details on using automation schedules, see Scheduling Automated Processing.