Multicurrency Funds Transfers: Process Activity

The following activity will walk you through the process of performing a funds transfer in a foreign currency.

Story

Suppose that on January 30, 2024, SweetLife Fruits & Jams needs to transfer C$484 to its new cash account to be able to make payments to vendors. The amount transferred from the 10200WH (Wholesale Checking) account is $379 (in USD), and the amount received to the 10215WH (Checking Account CAD) is C$484.21, as reported by the bank.

Acting as a SweetLife accountant, you need to process the cash transfer in the system.

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 Chart of Accounts (GL202500) form, the 10500 (Cash in Transit) account has been created.
  • On the Cash Accounts (CA202000) form, the 10200WH (Wholesale Checking) bank account has been predefined.

Process Overview

On the Funds Transfers (CA301000) form, you will record a funds transfer in the amount of C$500.58 from the 10200WH cash account to the 10215WH cash account. You will then review the GL transactions generated by the system on the Journal Transactions (GL301000) form. Finally, you will review the balance of the 10215 GL account on the Account Details (GL404000) form.

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 lesson, 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 you have configured an account as described in Multicurrency Cash Accounts: To Configure an Account.

Step 1: Recording a Funds Transfer

To record a funds transfer, do the following:

  1. Open the Funds Transfers (CA301000) form.
  2. On the form toolbar, click Add New Record and in the Description box, enter Transfer 484 CAD.
  3. In the Source Account section, specify the following settings:
    • Account: 10200WH (Wholesale Checking)
    • Transfer Date: 1/30/2024 (inserted by default)
    • Document Ref.: 1302023
    • Amount: 379.00
  4. In the Destination Account section, specify the following settings:
    • Account: 10215WH (Checking Account CAD)

      You created this cash account in the Multicurrency Cash Accounts: To Configure an Account prerequisite activity.

    • Receipt Date: 1/30/2024 (inserted by default)
    • Document Ref.: 1302023 (inserted automatically)
    • Amount: 484.21 (inserted automatically)

      The amount transferred from the 10200WH account is $379 in the base currency. Based on the effective currency rate, the transferred amount is C$484.21.

    Tip:
    Before you release the funds transfer, you could click the Exchange Rate box (right of the Currency box) in the Source Account section; in the Rate Selection dialog box, which opens, you can override the currency rate for this particular document. If the source account is denominated to a foreign currency, the exchange rate in the Source Account section (also in the Exchange Rate box right of the Currency box) can be overridden as well.
  5. On the form toolbar, click Remove Hold.
  6. On the form toolbar, click Release to release the funds transfer.

    When the system transfers amounts, it creates and releases two GL batches, one for each currency.

Step 2: Reviewing the Generated GL Transactions

To review the GL transactions generated for each currency, do the following:

  1. While you are still on the Funds Transfers (CA301000) form viewing the funds transfer you recorded, in the Source Account section, click the link in the Batch Number box.
  2. On the Journal Transactions (GL301000) form, which opens, review the transaction. The batch was created in the base currency, because the 10200WH (Wholesale Checking) account is denominated to the base currency.
  3. On the Funds Transfers form, in the Destination Account section, click the link in the Batch Number box to open the batch that was generated when the transfer to the 10215 GL account was received.
  4. On the Journal Transactions (GL301000) form, which opens, review the transaction in the base and foreign currencies. (To toggle between the base and foreign currency, click the View Base or View Cury button right of the Currency box.)

    The accounts are maintained in different currencies, so the system performs the currency conversion by using the cash-in-transit account. The following actions were performed when the system released the transaction:

    • The destination account (10215) was debited in the transfer amount (C$484.21, which is $379.00 based on the current exchange rate).
    • The cash-in-transit account (10500) was credited in the amount of the transfer out (C$484.21).

Step 3: Reviewing the Balance of the Account

To review the balance of 10215 (Checking Account CAD), do the following:

  1. Open the Account Details (GL404000) form.
  2. In the Selection area, specify the following settings:
    • From Period: 01-2024
    • To Period: 01-2024
    • Account: 10215 (Checking Account CAD)
    • Show Currency Details: Selected
  3. Review the funds transfer in the table and the ending balance of the 10215 account in the foreign currency and the base currency.