Credit Card Feature and Multicurrency

This information applies if you use multiple currencies and the Credit Card feature in Deltek.

When you use the Credit Card feature, you specify the currency for a credit card in Settings > Advanced Accounting > Credit Cards in the desktop application. This is the currency of the credit card statement and likely the currency in which you pay the credit card company.

If you import charges from a credit card statement into Deltek, you are required to import the charge payment (amount in credit card currency). In addition, you can import the transaction amount and transaction currency. If you only import the payment amount, Deltek assumes the transaction amount and currency match the payment amount during the credit card import. The transaction amount and payment amount will be available to the expense report user on an expense report.

If you import charges from a credit card statement into Deltek, the credit card reconciliation that you perform in Accounting > Credit Cards > Credit Card Reconciliation is based on the credit card's currency.

Gains and Losses that Are Associated with a Credit Card

When a credit card's currency is the same as a company's functional currency, there are no gains or losses associated with the credit card as a result of exchange rate differences.

When a credit card's currency is different from a company's functional currency, gains or losses are possible due to exchange rate differences between the time that an expense report (company paid) is posted and the voucher is paid to the credit card company. An example of this scenario is when an employee in a satellite office (that is not defined as a separate company within Deltek) has a company-issued credit card in a local currency that is different than the company's functional currency.

Deltek provides the necessary information for you to create a journal entry to account for gains and losses due to fluctuating exchange rates. Compare the following amounts to determine the difference to the gains or losses account for the journal entry:

• The Summary tab on the Credit Card Statement Reconciliation form (Accounting > Credit Cards > Credit Card Reconciliation) displays the functional currency amount of the original expense report and AP disbursement transactions that are tied to the active credit card statement.
• The AP Payment Processing Posting Log (Transaction Center > Posting Logs) that contains the payment to the credit card company displays the functional currency amount paid to the credit card company.

Foreign Denominated Accounts

If the company-paid credit account for a credit card will hold a balance from month to month and you want to revalue the balance, you can designate the account as foreign denominated on the General tab of Settings > Accounting > Chart of Accounts. Deltek includes foreign denominated accounts during gain and loss processing to calculate any unrealized gain or loss. If you clear the amount in the company-paid credit account each month, it is not necessary to make it foreign denominated.