Conversion from Multiple Currencies

Intercompany Conversions

Intercompany transactions are based on original/transaction currency. Generally, you will have all amounts in the executing company (source).

Maconomy uses the original currency as the agreement currency, which requires recalculation of base and enterprise amount in the responsible company. This is nearly a standard currency conversion from one currency, but base amount in executing and responsible company must have the same value, if it is the same currency and you use the same exchange rate table in the two companies.

Enterprise amount in executing and responsible company must have the same value, if we have the same base amount and currency in the two companies.

Intracompany Conversions

These are intercompany conversions in all currencies from one type of transaction to another. It can be from unit price to total price, cost price to billing price with a markup percentage, or amount excluding tax to tax amount.

You can either perform the same calculation on all amounts, or perform the calculation on the currency amount. Then, recalculate base and enterprise amount on the target transaction.

Apply same calculation to all currencies (recommended):

Calculate currency amount on target transaction and convert that amount into base and enterprise:

The two methods approximately give the same result. However, there can be small rounding variances.

The total price is always the unit price multiplied by number of units. Therefore, the conversion from unit price to total price must always apply same calculation to all currencies. This is the recommended method.

Conversion to Reporting Currency

Conversion to reporting currency is typically a conversion from one amount (in either original/registration currency, base currency, or enterprise currency) to the amount in the reporting currency.

A reporting currency does not always have a clear target (job, company, or enterprise). For example, it can be a total for jobs/companies with different exchange rate setup.

The user usually recalculates with current exchange rates (using the standard currency setup and a user-selected exchange rate table), or with a user-selected exchange rate table to ensure the same conversions. This can be an enterprise report with an average exchange rate.

We recommend that you add an exchange rate table to all the places where the user can select a reporting currency. Use the user-selected exchange rate table for all conversions to reporting currency, or the job/company-specific exchange rate table, if the user has not selected an exchange rate table.