Currency Types

The foundation of the Multicurrency feature is the ability to store transactions and other data in multiple currencies, and to use this stored information to fulfill different business needs.

You cannot change a currency after related data has been posted. For example, you cannot change the project currency after you have posted expense charges against that project.

The following table explains how the Multicurrency feature tracks various currency types.

Currency Type	Description	To Specify the Currency
Functional	The currency of the primary economic environment in which a company operates. Normally, this is the currency in which cash is generated and expended by the company. For example, a company located in France would normally use the euro as its functional or home currency. General Ledger reports use a single currency, your company's functional currency, making it easy for you to analyze your financials.	Select the currency on the Enable Multicurrency dialog box in Configuration > General > Currency. This dialog displays when you enable the Multicurrency feature. If your firm is also using the Multicompany feature, use the Functional Currency option on the Currency tab of Configuration > General > Company Settings to select each company's functional currency.
Transaction	The currency in which you enter an individual transaction into Vision, in Transaction Entry or in Purchasing. For example, if a United States-based company purchases materials from Mexico and is billed in Mexican pesos, you enter the vendor invoice in the transaction currency of Mexican pesos.	Use the Currency option on the New File dialog box in Transaction Entry, or use the Currency Code option on the appropriate form in Purchasing.
Project	The currency in which you manage a project. This currency may be different from the functional currency of the project’s home company. For each project, you define the project currency at the top level of its work breakdown structure. The project currency applies to any and all lower levels (that is, phases or tasks) of the project's WBS. When labor or expense charges are made to a project, the charges are recorded in the project currency, as well as all other appropriate currencies. You use the project currency for all project management purposes, including project reporting and project planning.	Use the Project Currency option on the General tab of the Project Info Center.
Billing	The currency you use to generate invoices and billing reports for a specific project and all its phases and tasks. For each project, you define the billing currency at the top level of its work breakdown structure. The billing currency applies to any and all lower levels (that is, phases or tasks) of the project's WBS. Note that project and billing currencies do not need to be the same. This allows you to plan and manage a project in one currency and invoice the client in another currency.	Use the Billing Currency option on the General tab of the Project Info Center.
Payment	The currency in which you make payments. This currency may be different from the transaction currency of the original receivable or payable.	The way that you set the payment currency varies, depending on the transaction type. Typically, the payment currency is the currency specified for an account that is subsequently referenced by a bank code. For example, on an accounts payable voucher, the bank code determines the currency in which the check or electronic funds payment is made to the vendor. You specify currencies for accounts on the General tab of the Chart of Accounts Info Center. You specify accounts for bank codes on the Bank Codes tab of Bank Codes Configuration.
Consolidated Reporting	If you use the Multicompany feature, this is the currency Vision uses to create consolidated financial statements for multiple companies using different functional currencies.	You specify the currency when you create the consolidation group (also called the reporting group) in Configuration > Organization > Consolidated Reporting.
Presentation	You use a presentation currency to generate a report with all amounts expressed in a single currency. For example, if you are generating a Project Summary report that includes projects managed in multiple currencies, but you want all project financial data to appear in euros on the report, you would select euros as the presentation currency. You can specify a presentation currency on General Ledger reports, certain Project reports, and some CRM reports (such as the Opportunity List report). You can specify as the presentation currency any currency enabled for use by your enterprise.	On the Report Options dialog box, specify the Presentation Currency options, then select the date Vision uses to calculate currency exchange rates for the report.
Account	Each account set up for use as a bank account (in Configuration > Accounting > Banks) must have a currency. You can also specify a currency for other accounts if the balance of the account should be maintained in a currency other than the company’s functional currency (an account for a loan from a foreign bank, for example). If you specify an account currency that is different from the company’s functional currency, the account is considered a foreign-denominated account.	You specify the account currency on the General tab of the Chart of Accounts Info Center.
Tax	If you enable tax auditing for a company, you must select a currency for each tax code. In most cases, this is the currency in which you report and pay tax amounts to the taxing authority. Vision stores tax amounts for transactions in the tax currency as well as in the transaction currency and other relevant types of currency.	You specify the currency for a tax code in the Tax Currency field in the Configuration > Accounting > Taxes. When you generate the Sales List or the Tax Analysis report, you have the option to display tax basis amounts and tax amounts in the tax currency. You also have the option, in the Invoice Template Editor, to add an informational line to invoices that shows the tax amount in the tax currency. (This is only a note. In supporting detail for the invoice amount, tax amounts are displayed in the billing currency.)