Multiple Base Currencies: Implementation Activity

In this implementation activity, you will learn how to create a company with a base currency that is different from the base currency of the companies in the tenant.

Attention:
This activity is based on the U100 dataset. If you are using another dataset, or if any system settings have been changed in U100, these changes can affect the workflow of the activity and the results of the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story

Suppose that the management of SweetLife Fruits & Jams has decided to establish a related company in Canada (SweetLife Canada). The company should have the Without Branches type and share the preferences and list of items with SweetLife Fruits & Jams. However, the company should have a different base currency than SweetLife Fruit & Jams has—Canadian dollar (CAD).

Acting as the implementation consultant, you need to create the needed company, specifying its base currency and actual ledger. You will also create a cash account for the company and specify currency rates for CAD and USD.

Process Overview

In this activity, on the Enable/Disable Features (CS100000) form, you will disable the features that do not support multiple base currencies and enable the needed features.

Note:
You will disable these features for training purposes. In a production environment, you should not disable any features you are using, because you will not be able to enable them after the Multiple Base Currencies feature has been enabled.

On the Companies (CS101500) form, you will create a new company, specifying CAD as its base currency. You will then create an actual ledger for the new company by clicking Create Ledger on the form toolbar. On the Currencies (CM202000) form, you will review the settings of the base currency. On the Manage Financial Periods (GL503000) form, you will open the financial periods for the new company.

On the Chart of Accounts (GL202500) form, you will create a GL account denominated in CAD, and on the Cash Accounts (CA202000) form, you will create a CAD cash account to be used in documents originating from the new SweetLife Canada company. On the Currency Management Preferences (CM101000) form, you will review and save the preferences that will be used in the system. Finally, on the Currency Rates (CM301000) form, you will create CAD-to-USD and USD-to-CAD rates that the system will use to convert amounts to and from the base currencies in the system.

System Preparation

Before you start creating a company with the CAD base currency, launch the MYOB Acumatica website, and sign in to a company with the U100 dataset preloaded. You should sign in as a system administrator Kimberly Gibbs by using the gibbs username and the 123 password.

Step 1: Enabling the Needed Features and Disabling Unsupported Features

To disable the features that do not support multiple base currencies and enable the features that are needed for the support of multiple base currencies, do the following:
  1. Open the Enable/Disable Features (CS100000) form.
  2. On the form, make sure that the Multibranch Support and Multicompany Support features have been enabled.
  3. On the form toolbar, click Modify to make it possible to change the set of selected features.
  4. Clear the following check boxes:
    • Service Management
    • Manufacturing
    • Purchase Requisitions (Inventory and Order Management group)
    • Retail Commerce (Third Party Integrations group)
    • Payroll
  5. On the form toolbar, click Enable.
  6. On the form toolbar, click Modify and select the following check boxes:
    • Multicurrency Accounting (Standard Financials group)
    • Customer and Vendor Visibility Restriction (Advanced Financials group)
    • Multicurrency Projects (Projects group)
    • Multiple Base Currencies (Advanced Financials group)
  7. On the form toolbar, click Enable to enable the selected features.

Step 2: Creating a New Company

To create a new company with the CAD base currency, do the following:

  1. Open the Companies (CS101500) form and click Add New Record on the form toolbar.
    Tip:
    To open the form for creating a new record, type the form ID in the Search box, and on the Search form, point at the form title and click New right of the title.
  2. In the Summary area, specify the following settings:
    • Company ID: SLCANADA
    • Company Name: SweetLife Canada
    • Company Type: Without Branches
  3. In the Main Address section of the Company Details tab, specify the following address settings:
    • City: Toronto
    • Country: CA - Canada
    • State: ON - Ontario
    • Postal Code: M4E 2V5
  4. In the Base Currency ID box (Base Currency Settings (Shared) section), select CAD - Canadian Dollar.
  5. In the Access Role box (Configuration Settings section), select Branch SLCanada. This will make it possible for the implementation consultant to access this company.
    Note:
    This access role has been preconfigured in the system and assigned to the gibbs user.
  6. On the form toolbar, click Save.

Step 3: Creating a Ledger for the New Company

To create an actual ledger for the new company, do the following:

  1. While you are still on the Companies (CS101500) form with the new company opened, click Create Ledger on the form toolbar.
  2. In the Create Ledger dialog box that opens, specify the following settings:
    • Ledger ID: SLCANADA
    • Description: SLCANADA Actual Ledger
  3. Click Create to create this ledger and close the dialog box.
  4. On the Ledgers tab, review the ledger you have created. Notice that the currency of the created ledger (CAD) is the base currency you have specified for the company.

Step 4: Reviewing the Base Currency Settings

To review the company's base currency settings, do the following:

  1. Open the Currencies (CM202000) form.
  2. In the Currency ID box, select CAD.
  3. In the Summary area, review the values in the Description, Currency Symbol, and Decimal Precision boxes for the base currency you selected for the company in Step 2 of this activity.

    Notice that the Active and Use for Accounting check boxes are selected automatically and are unavailable for editing. These check boxes are always selected and unavailable when the currency is the base currency of one of the companies in the tenant, and CAD is the base currency for the SLCANADA company.

Step 5: Opening Financial Periods for the New Company

To open the financial periods for the new company, do the following:

  1. Open the Company Financial Calendar (GL201100) form.
  2. In the Summary area, specify the following settings:
    • Company: SLCANADA
    • Financial Year: 2024
  3. On the More menu, click Open Periods.

    The Manage Financial Periods (GL503000) form opens with Open selected in the Action box of the Summary area.

  4. On the form toolbar, click Process All.

    The system opens the Processing dialog box and runs the process of opening periods.

  5. Close the Processing dialog box.

Step 6: Creating a Cash Account

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

  1. Open the Chart of Accounts (GL202500) form.
  2. On the form toolbar, click Add Row, and in the added row, specify the following settings:
    • Account: 10215
    • Account Class: CASHASSET
    • Description: Checking Account CAD
    • Post Option: Detail
    • Currency: CAD
    • Revaluation Rate Type: SPOT
  3. On the form toolbar, click Save to save your changes.
  4. Open the Cash Accounts (CA202000) form.
  5. On the form toolbar, click Add New Record, and in the Summary area, specify the following settings:
    • Cash Account: 10215SL
    • Account: 10215 - Checking Account CAD
    • Branch: SLCANADA
    • Currency: CAD (selected automatically)
    • Curr. Rate Type: SPOT
  6. 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
  7. On the Entry Types tab, click Add Row on the table toolbar, and in the Entry Type ID column of the added row, select BANKFEE.
  8. Click Add Row on the table toolbar, and in the Entry Type ID column of the added row, select INTEREST.
  9. On the form toolbar, click Save to save your changes.

Step 7: Reviewing the Currency Management Preferences

To review and save the currency management preferences that will be used in the system, do the following:

  1. Open the Currency Management Preferences (CM101000) form.
  2. In the Default Rate Types section, review the rate type (SPOT) specified by default for subledgers.
  3. Make sure that the Automatically Post to GL on Release check box is selected.
  4. On the form toolbar, click Save to save the preferences.

Step 8: Creating Currency Rates

To create currency rates that the system will use to convert amounts from the base currency of one company into the base currency of another company, do the following:

  1. Open the Currency Rates (CM301000) form.
  2. In the To Currency box, select USD. This is the currency to which the conversion with the specified exchange rate should be performed.
  3. In the Effective Date box, enter 1/1/2024.
  4. On the Currency Rate Entry tab, click Add Row on the table toolbar, and specify the following settings for the added row:
    • From Currency: CAD
    • Currency Rate Type: SPOT
    • Currency Effective Date: 1/1/2024
    • Currency Rate: 1.2974
    • Mult./Div.: Divide

    The From Currency box specifies the currency from which the conversion should be performed by using the Currency Rate and the operation selected in the Mult./Div. box. In this case, the conversion rule from CAD to USD is the following: 1 CAD = 1 / 1.2974 USD.

  5. On the form toolbar, click Save to save your changes.

    The created rate is effective starting on January 1, 2024, and does not have an expiration date. The system will use this rate for converting the amounts in CAD into USD in any document with a date of January 1, 2024 or later.

  6. In the To Currency box, select CAD.
  7. In the Effective Date box, enter 1/1/2024.
  8. On the Currency Rate Entry tab, click Add Row on the table toolbar, and specify the following settings for the added row:
    • From Currency: USD
    • Currency Rate Type: SPOT
    • Currency Effective Date: 1/1/2024
    • Currency Rate: 1.2974
    • Mult./Div.: Multiply
  9. On the form toolbar, click Save to save your changes.