Using Multicurrency Accounting in Accounts Payable

Accounts Payable lets you process invoices and payments in any currencies your vendors use. This section summarizes the steps you take to set up a multicurrency Accounts Payable system.

Note: Before you can use the multicurrency features, you must first install the Sage ERP Accpac Multicurrency package for the Sage ERP Accpac edition you are using (sold separately).

To create a multicurrency Accounts Payable system, you

1. Turn on the Multicurrency option for the company and select a default rate type in the Company Profile form in Common Services.
2. Use the Common Services Currency forms to add any currency codes you need for Accounts Payable, and enter rates for the currencies you use.

When you install Sage ERP Accpac, you also install a large set of currency codes that use standard international abbreviations. You probably will not need to define new codes unless you do not use the international codes.

3. Use Accounts Payable's Options form to select the Multicurrency option for your Accounts Payable system.
4. Use the Account Sets form to add at least one account set for each currency you want to use in Accounts Payable. In each account set, enter the currency code and the numbers of your exchange gain and loss general ledger accounts.
5. When you create vendor groups and vendor records, select the account set and the rate type for each record.

The vendor's account set determines the vendor's currency. The vendor group account set is only a default when adding vendor records. You can override it.

Invoices are always issued in the vendor currency, although payment can be in any currency.

6. If you post transactions to add year-to-date figures, enter them in the appropriate currencies.
7. If you enter statistics for previous years and periods, you must enter amounts in both the functional and vendor currencies. Accounts Payable cannot calculate equivalent amounts from statistics you enter yourself.

When you post transactions during and after setup, Accounts Payable calculates statistical totals in both the functional currency and the vendor's currency, using the exchange rate posted with each transaction.

 

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