Multiple Currencies
The Multicurrency feature lets your enterprise transact business in any number of global currencies, while maintaining core financial records in a single, functional currency.
Enable the Multicurrency Feature
To begin using the Multicurrency feature, use the Activate Currencies page of the Setup application.
Features
The Multicurrency feature lets your enterprise:
- Process transactions in any currency. Specifically, you can record vendor invoices, generate client invoices, and process both payments and receipts in any currency. You can also process employee expense reports containing expense items in different currencies.
- Manage a project in one currency and bill for the project in a different currency.
- Use pre-configured currency settings, including the currency symbol and number of decimal places, for currencies recognized by the International Standards Organization (ISO).
- Associate a transaction with the exchange rate in effect on the date the transaction occurs. Exchange rates are stored internally by day to facilitate these associations.
- Override the exchange rate for an individual transaction.
- Obtain exchange rates via inverse exchanges or triangulation.
- Integrate multiple currencies with the Multicompany application, which supports the management of multiple companies within a single enterprise. Each company can have its own functional currency.
- Generate reports with multiple currencies. Alternatively, for some general ledger, project, and CRM reports, you can select a single presentation currency so that all amounts are expressed in a single currency.
- Revaluate currencies to restate foreign currency balances as exchange rates fluctuate.
- Plan a project in any currency and include employees from across the enterprise in a plan, regardless of their home currencies.
- Related Topics:
- Currency Types
When you track multiple currencies in Vantagepoint, you store transactions and other data in multiple currencies and use this stored information to fulfill different business needs. - Impact of Multiple Currencies on Hubs and Accounts
Tracking multiple currencies in Vantagepoint has different effects on different areas. - User-Defined Tabs and Multiple Currencies
When you create user-defined tabs, you can add fields related to multiple currencies. - Foreign-Denominated Accounts
In some situations, a company must manage all transactions associated with a particular account in a single currency. If your company needs to do this, you can identify the account as a foreign-denominated account, with a single currency that you specify. - Transaction Processing and Multiple Currencies
When you track multiple currencies in Vantagepoint, transactions are stored in multiple currencies. - Employee Labor and Expense Charges and Multiple Currencies
All employee-related financial data is set up in the functional currency of the employee's home company, established through organization codes. An employee can work on any project, regardless of the employee’s home currency or the project currency and Vantagepoint will manage all project costing and billing issues related to using multiple currencies. - Project Planning and Multiple Currencies
Some enterprises that use Vantagepoint Planning plan their projects using cost values, some using billing values, and some using both. Therefore, Vantagepoint tracks project plans in both the project currency, representing planned cost values, and the billing currency, representing planned billing values. - Gains and Losses Resulting from Exchange Rate Changes
An enterprise that conducts business in more than one currency can have financial gains or losses due to changes in currency exchange rates. You can set up Vantagepoint to calculate and post currency exchange gains and losses in accordance with the generally accepted accounting practices that apply to your company. - Accounts Payable and Multiple Currencies
When you track multiple currencies in Vantagepoint, certain considerations must be taken into account when you process accounts payable transactions. - Revenue Generation and Multiple Currencies
When you track multiple currencies in Vantagepoint, you must perform some additional steps to set up and use Revenue Generation. - Asset Management and Multiple Currencies
When you track multiple currencies in Vantagepoint, all of the currency values that are displayed in Asset Management and the Equipment hub are in the functional currency of the company that is associated with an asset's project. - Purchasing and Multiple Currencies
When you track multiple currencies, Vantagepoint stores maximum purchase order amounts, buyers' purchasing limits, approvers' approval limits, and total-to-date amounts in the functional currency of the active company. - Reporting and Multiple Currencies
When you track multiple currencies in Vantagepoint, you can generate reports targeted at the special business needs of a multicurrency enterprise. - Billing and Multiple Currencies
Use the Billing application to calculate and generate bills in a multiple currency environment. Use the Projects hub to specify billing rate tables for labor, expenses, consultants, and units. - Exchange Rates
When you post a transaction, Vantagepoint checks to see if the various currency types (transaction, functional, billing, and project) are the same. If they differ, Vantagepoint performs a currency exchange.
Parent Topic: Concepts