Documents in Different Base Currencies: To Process an AR Invoice

The following activity will walk you through the process of processing an invoice between the branches that use different base currencies.

Story

Suppose that in January 2024, SweetLife Canada (selling company) provided 10 hours of consulting services to the employees of the MHEAD branch of the Muffins & Cakes company (purchasing company).

Acting as Kimberly Gibbs, an employee who has access to the Muffins and SweetLife Canada companies, you need to process an AR invoice from SweetLife Canada to MHEAD.

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 Multibranch Support, Multicompany Support, Customer and Vendor Visibility Restriction, Multicurrency Accounting, and Multiple Base Currencies features have been enabled.
  • On the Companies (CS101500) form, the MAFFINS company has been configured.
  • On the Branches (CS102000) form, the MHEAD branch of the MAFFINS company has been created.
  • On the Non-Stock Items (IN202000) form, the CONSULT non-stock item has been configured.

Process Overview

In this activity, on the Invoices and Memos (AR301000) form, you will create an invoice originating from the SLCANADA branch for the MHEAD customer and review the invoice amounts in the base currencies of the branches. You will then release the invoice and review the generated GL transaction on the Journal Transactions (GL301000) 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 a system administrator Kimberly Gibbs by using the gibbs 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 on the calendar. For simplicity, in this activity, you will create and process all documents in the system on this business date.
  3. On the Company and Branch Selection menu on the top pane of the MYOB Acumatica screen, select the SweetLife Canada branch.
  4. In the company to which you are signed in, be sure that you have configured the SweetLife Canada company, as described in Multiple Base Currencies: Implementation Activity, which is a prerequisite activity.
  5. In the company to which you are signed in, be sure that you have restricted the visibility of a customer to the SweetLife Canada company, as described in Customer Visibility: To Restrict Visibility to a New Company, which is a prerequisite activity.
  6. On the Company Groups (CS102500) form, be sure that you have added the USCOMP company group, as described in Company Groups: Implementation Activity, which is a prerequisite activity.
  7. On the Customers form, be sure that the MHEAD customer has been extended from a branch, as described in Intercompany Sales: Implementation Activity, which is a prerequisite activity.
  8. On the Non-Stock Items (IN202000) form, be sure that for the CONSULT item, the default price in CAD has been defined, as described in Prices in Base Currencies: Process Activity, which is a prerequisite activity.

Step: Processing an AR Invoice

To process an AR invoice between branches that use different base currencies, do the following:

  1. Open the Invoices and Memos (AR301000) form.
    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. Click Add New Record on the form toolbar, and specify the following settings in the Summary area:
    • Type: Invoice
    • Date: 1/30/2024 (inserted automatically)
    • Customer: MHEAD

      This is a customer that has been extended from a branch. It can be used by all the companies in the tenant because on the Customers (AR303000) form, the Restrict Visibility To setting (Financial tab) for this customer is empty.

    • Currency: USD (inserted by default)
    • Description: Consulting
  3. On the Financial tab, make sure that SLCANADA is selected in the Branch box.
  4. In the Payment Method box, select WIRE, and in the Cash Account box, select 10215SL.
  5. On the Details tab, click Add Row on the table toolbar, and specify the following settings for the added row:
    • Branch: SLCANADA (inserted automatically)
    • Inventory ID: CONSULT
    • Quantity: 10
    • Unit Price: 50.10 (inserted automatically based on the default price recalculated in USD)
    • Ext. Price: 501.00 (calculated automatically)
  6. In the Summary area, click the Currency Toggle button. Notice that the system has recalculated the price for the document line based on the currency rate effective on the document date.
  7. On the form toolbar, click Remove Hold, and then click Release to release the invoice.
  8. On the Financial tab, click the link in the Batch Nbr. box to review the generated GL transaction on the Journal Transactions (GL301000) form.

    The transaction has been posted for the SLCANADA branch and the SLCANADA actual ledger. The transaction currency specified in the Currency box is USD, because it is the currency assigned to the MHEAD customer on the Customers (AR303000) form. If you click the Currency Toggle button in the Summary area, the amount of the transaction is displayed in CAD (the base currency of the originating branch).