Multicurrency Cash Accounts: To Process a GL Transaction

The following activity will walk you through the processing of a GL transaction in a foreign currency.

Story

Suppose that SweetLife Fruits & Jams has just opened a bank account in Canadian dollars and needs to pay a monthly fee of C$9.00 to the bank. Acting as a SweetLife accountant, you need to create a GL transaction with the bank fee, post the transaction, and review the account balance.

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 Ledgers (GL201500) form, the ACTUAL ledger with the Actual type has been predefined.
  • On the Chart of Accounts (GL202500) form, the 61100 (Bank Service Charges) account has been created.
  • On the Currency Rate Types (CM201000) form, the SPOT rate type has been predefined.

Process Overview

You will create and post a GL transaction in CAD on the Journal Transactions (GL301000) form. On the Account Summary (GL401000) form, you will review the account balances for the 01-2024 period and then view the details of the 10215 (Checking Account CAD) account on the Account Details (GL404000) form to review the ending balance of the account.

System Preparation

Before you begin performing the steps of this activity, 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. In the info area, in the upper-right corner of the top pane of the MYOB Acumatica screen, make sure that the business date in your system is set to 1/30/2024. If a different date is displayed, click the Business Date menu button, and select 1/30/2024 from the calendar. For simplicity, in this activity, you will create and process all documents in the system during this business date.
  3. 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.
  4. As a prerequisite activity, make sure that the multicurrency accounting functionality has been configured as described in Multicurrency Functionality: Implementation Activity and Configuration of Rate Types and Rates: To Configure Rates.
  5. As a prerequisite activity, make sure that on the Cash Accounts (CA202000) form, the 10215WH cash account denominated in the CAD currency and associated with the 10215 (Checking Account CAD) GL account has been defined, as described in Multicurrency Cash Accounts: To Configure an Account.

Step 1: Creating a GL Transaction

To create a GL transaction in CAD, do the following:

  1. Open the Journal Transactions (GL301000) form.
  2. On the form toolbar, click Add New Record and specify the following settings in the Summary area:
    • Transaction Date: 1/30/2024 (inserted automatically)
    • Post Period: 01-2024 (inserted automatically based on the date)
    • Currency: CAD

      You are overriding the currency to CAD to create the transaction in Canadian dollars; otherwise, the system creates the transaction in the base currency (USD), which is used by default in journal transactions posted to the ACTUAL ledger.

    • Description: Bank fee (January 2024)

    Notice that the Exchange Rate box (located to the right of the Currency box) displays the currency exchange rate that will be used in the created transaction.

  3. On the table toolbar, click Add Row, and specify the following settings for the added row:
    • Account: 61100 (Bank Service Charges)
    • Debit Amount: 9.00
  4. Add another row, and specify the following settings:
  5. In the Summary area, click the Exchange Rate box (located to the right of the Currency box) and review the Rate Selection dialog box, which opens.

    This dialog box shows the settings of the currency rate that is used in this transaction. The currency rate type (SPOT) is defined by the GL Rate Type setting on the Currency Management Preferences (CM101000) form. The Effective Date is the date on which the currency rate becomes effective.

    Tip: If needed, in the Rate Selection dialog box, you can override the currency rate for a particular transaction.
  6. Click OK to close the dialog box.
  7. Click the View Base button, and review the transaction amounts in the base currency.

    The system recalculates the transaction amounts to USD as follows by using the exchange rate that is effective on the transaction date: C$9.00 * 0.7827176.

    Tip: You cannot change the amounts in the base currency directly. Instead, you need to switch to the transaction currency and edit the amounts in the transaction currency; the amounts in the base currency will be recalculated accordingly.
  8. On the form toolbar, click Remove Hold; the batch is assigned the Balanced status.
  9. On the form toolbar, click Release to release the GL transaction.

Step 2: Reviewing the Account Balance

To review the balance of the 10215 cash account, do the following:

  1. Open the Account Summary (GL401000) form.
  2. In the Summary area, specify the following settings:
    • Period: 01-2024
    • Show Currency Details: Selected
  3. Review the account balances.

    The Ending Balance column shows the ending balance of each account at the end of the selected period in the base currency. The Curr. Ending Balance column shows the ending balance of the account at the end of the selected period in the currency of denomination, which is shown in the Currency ID column. Similarly, the Beg. Balance, Debit Total, and Credit Total columns show the amounts in the base currency, while the Curr. Beg. Balance, Curr. Debit Total, and Curr. Credit Total columns are in the account currency.

  4. In the table, click the row with the 10215 (Checking Account CAD) account, and on the form toolbar, click Account Details.
  5. On the Account Details (GL404000) form, which the system has opened, review the account details.

    The table shows the list of transactions processed in the selected period (currently there is only one journal entry). The entry amounts are shown in the base and foreign currency, because the Show Currency Details check box is selected in the Selection area of the form. The Ending Balance box in the Summary area shows the account balance at the end of the period in the base currency. The Curr. Ending Balance column shows the ending balance in the foreign currency.