Multicurrency Projects: General Information

In MYOB Acumatica, you can track projects in the project currency, which can differ from the base currency of the company that manages the project. You can review project costs and revenues both in the project currency and in the base currency. You can also calculate project profitability in both currencies, and present costs to the customer in the customer’s currency, which you can specify as the billing currency. In addition, if the company uses multiple base currencies, you can easily manage multicurrency documents that originate from different company branches.

Learning Objectives

In this chapter, you will learn how to do the following:

  • Configure a project to use multiple currencies
  • Track documents that originate from branches with different base currencies in the scope of a single project
  • Define the exchange rates to be used in projects
  • Process project-related documents in multiple currencies
  • Review and collect project information in different currencies

Applicable Scenarios

You use projects with multiple currencies in the following cases:

  • A project is managed in one currency, and related project costs are recorded in other currencies
  • A project is managed in one currency, and the customer needs to be billed in another currency
  • A project involves employees that report their expenses in different currencies
  • A project involves related companies with different base currencies. One of these companies re-bills the project expenses to another company.

Multiple Currencies in Projects

If the Multicurrency Projects and Multicurrency Accounting features are enabled on the Enable/Disable Features (CS100000) form, you can specify different currencies to be used for a project's accounting and its billing as follows:

  • In the Project Currency box on the Summary tab (Project Properties section) of the Projects (PM301000) form, you specify the project currency. For a new project, the system fills in this box with the customer's currency, which is specified in the Currency ID box on the Financial tab of the Customers (AR303000) form. If the customer has no currency defined, the base currency is inserted as the Project Currency. On the Revenue Budget and Cost Budget tabs of the Projects form, you can enter the project amounts in the project currency only. You can change the project currency if the project has no transactions, commitments, or change orders.
  • In the Billing Currency box on the Summary tab of the Projects form, you specify the currency in which the invoices to the customer will be prepared during project billing procedure.

In addition, if the Multiple Base Currencies feature is enabled on the Enable/Disable Features form, you can specify the base currency of the project in the Base Currency box on the Summary tab of the Projects form. If a branch is selected in the Branch box on the Summary tab (indicating that the project is related to a particular company branch), the system verifies that the base currency of the project matches the base currency of the selected branch. You can change the base currency of the project only if no project transactions have been posted to the project yet.

Currency Rates in Projects

If the project currency differs from the base currency, you can track the project amounts in both the base currency and the project currency. By default, on the Revenue Budget, Cost Budget, and Balances tabs of the Projects (PM301000) form, the system shows the project amounts in the project currency. The system uses the value in the Currency Rate for Budget box (in the Summary area) to calculate project amounts in the base currency.

You can click the exchange rate value in the Currency Rate for Budget box in the Summary area of the Projects form. Then in the Rate Selection dialog box, which is opened, you can override the exchange rate for the project if the Enable Rate Override check box is selected on the General tab (Financial Settings section) of the Customers form.

If you click the View Base button in the Currency Rate for Budget box in the Summary area, the system shows the budgeted amounts and balances in the base currency converted based on the rate shown in the Currency Rate for Budget box. To show the amounts in the project currency, you click the View Cury button in the Currency Rate for Budget box in the Summary area.

Note:
If the currency of project documents is different from the project currency, the system converts the currency rates by using direct rates only. Direct rates are those specified in the Currency Rate column on the Currency Rate Entry tab of the Currency Rates (CM301000) form.

The rate shown in the Rate Reciprocal box when you enter a rate for translating Currency 1 to Currency 2 cannot be used for the conversion of amounts from Currency 2 to Currency 1. This is because Rate Reciprocal, which is calculated automatically, can be different from the direct rate of Currency 2 to Currency 1. If it is so, there is no way for the system to define which of the rates should be used for conversion.

Project Billing

During project billing, the system creates pro forma or accounts receivable invoices in the billing currency of the project, which is specified in the Billing Currency box on the Summary tab (Billing and Allocation Settings section) of the Projects (PM301000) form.

In the created pro forma invoice on the Pro Forma Invoices (PM307000) form or in the accounts receivable invoice on the Invoices and Memos (AR301000) form, the system uses the default exchange rate type of the customer and customer location that are selected in the document to determine the exchange rate for calculating the billing amounts in the base currency. All the invoice amounts can be reviewed in both the billing currency and the base currency.

You can override the exchange rate for an invoice if for the customer, the Enable Rate Override check box is selected on the General tab (Financial Settings section) of the Customers (AR303000) form.