Master Records > Currency Code

AccountMate allows you to record transactions using currencies other than the company's home currency. It also allows you to set up the currency conversion of one currency to another currency.

In the Currency Code Maintenance function, you can set up unlimited foreign currency code records. It also allows you to define, for each currency code record, the general ledger Account ID into which AccountMate will record any gains or losses resulting from foreign currency transactions.

In the Currency Exchange Maintenance function, you can set up the currency conversion of one currency (base currency) to multiple currencies (counter or quote currencies).

Each currency code record allows you to define an exchange rate for the foreign currency relative to your home currency. These exchange rates allow the system to calculate the equivalent home currency amounts when generating the applicable reports. You can update the foreign currency's exchange rate at any time. The update will affect only the transactions created subsequent to the change.

Notes:

•There is only one home currency, which is the currency you specify when you set up the company in the Company Setup function. The home currency is the currency in which you will primarily keep your books and present your financial statements. The home currency is automatically added to the currency code record with a fixed exchange rate of 1.00.

•For foreign denominated transactions, AccountMate shows the transaction amounts based on the foreign currency set up for the customer or vendor. Since AccountMate reports are all shown in home currency, when foreign denominated transactions are saved in AccountMate, these are automatically converted to your home currency depending on the exchange rate set up for the currency code. For example, if the home currency is in US dollars and the vendor invoice is in Japanese Yen, the amounts shown in the AP Invoice Transaction function are all denominated in Japanese Yen and not in US dollars; however, when you save the vendor invoice and generate reports, the amount shown in the reports are all denominated in US dollars. The report function will give you an option to show multi-currencies.

•It is important to verify that exchange rates for foreign currencies are updated regularly whenever you record transactions using these foreign currencies.