Multicurrency Cash Accounts: To Configure an Account

In this implementation activity, you will learn how to create a denominated cash account.

Story

Suppose that the SweetLife Fruits & Jams company has opened a bank account in Canadian dollars (the CAD currency defined in the system), because it has customers and a few big vendors in Canada and wants to use Canadian dollars for payments to these partners.

Acting as a SweetLife accountant, you need to configure the following accounts:

  • A GL account denominated in CAD to which the cash account will be linked
  • A cash account denominated in CAD and an entry type for processing bank charges

Configuration Overview

In the U100 dataset, the following tasks have been performed for the purposes of this activity:

  • On the Enable/Disable Features (CS100000) form, the following features have been enabled:
    • Standard Financials, which provides the standard financial functionality
    • Multibranch Support, which supports multiple branches in your instance of MYOB Acumatica
    • Multicompany Support, which supports multiple companies within one tenant
    • Multicurrency Accounting, which enables multicurrency operations in the system
  • On the Companies (CS101500) form, the SWEETLIFE company has been defined.
  • On the Branches (CS102000) form, the HEADOFFICE branch of the SWEETLIFE company has been created.
  • On the Account Classes (GL202000) form, the CASHASSET account class has been predefined.
  • On the Entry Types (CA203000) form, the BANKFEE entry type has been configured.
  • On the Payment Methods (CA204000) form, the WIRE payment method for wire transfers has been predefined.
  • On the Currency Rate Types (CM201000) form, the SPOT rate type has been defined.

Process Overview

On the Chart of Accounts (GL202500) form, you will manually create a GL account denominated in CAD. On the Cash Accounts (CA202000) form, you will create a cash account linked to the new GL account and add the BANKFEE entry type for this cash account.

System Preparation

Before you begin creating GL and cash accounts, do the following:

  1. Launch the MYOB Acumatica website with the U100 dataset preloaded, and sign in as an accountant Anna Johnson by using the johnson username and the 123 password.
  2. On the Company and Branch Selection menu on the top pane of the MYOB Acumatica screen, make sure that the SweetLife Head Office and Wholesale Center branch is selected. If it is not selected, click the Company and Branch Selection menu button to view the list of branches that you have access to, and then click SweetLife Head Office and Wholesale Center.
  3. Make sure that the settings of the base currency (USD) and the foreign currencies (CAD and EUR) have been defined on the Currencies (AP101000) form, as described in Multicurrency Functionality: Implementation Activity.
  4. Make sure that currency rates for CAD and EUR have been created, as described in Configuration of Rate Types and Rates: To Configure Rates.

Step 1: Creating a GL Account

To create a GL account, do the following:

  1. Open the Chart of Accounts (GL202500) form.
  2. On the form toolbar, click Add Row, and specify the following settings in the added row:
    • Account: 10215
    • Account Class: CASHASSET
    • Description: Checking Account CAD
    • Post Option: Detail
    • Currency: CAD
    • Revaluation Rate Type: SPOT

    This denominated checking account will be used for performing operations in Canadian dollars; thus, CAD is the currency of denomination specified for the account. The specified revaluation rate type will later be used for the account revaluation.

    Note:
    If an account had at least one journal entry posted in a currency other than the currency of denomination, you would not be able to make this account denominated.
  3. On the form toolbar, click Save to save your changes.

Step 2: Creating a Cash Account

To create a cash account denominated in CAD, do the following:

  1. Open the Cash Accounts (CA202000) form.
  2. On the form toolbar, click Add New Record and specify the following settings in the Summary area:
    • Cash Account: 10215WH
    • Account: 10215 (Checking Account CAD)
    • Currency: CAD (selected automatically)
    • Curr. Rate Type: SPOT

      This is the currency rate type to be used by default in the transactions posted to the cash account. If this box is empty, the system will use the currency rate type specified in the CA Rate Type box on the Currency Management Preferences (CM101000) form.

    The system uses the currency of the denominated account to which the cash account is linked as the currency of the created cash account, so CAD is automatically specified in the Currency box. You cannot change the currency for the created cash account.

  3. On the Payment Methods tab, click Add Row on the table toolbar, and specify the following settings for the added row:
    • Payment Method: WIRE
    • Use in AP: Selected
    • Use in AR: Selected
  4. On the Entry Types tab, click Add Row on the table toolbar and in the Entry Type ID column, select BANKFEE.
  5. On the form toolbar, click Save to save your changes.