Currency Conversion Notes

These notes assume that Currency Conversion for GL and Job History are both enabled via the Currency Adjustment Registry and the Currency Master record.

AR and Invoicing Records:

Client Viewer

Currency Id:
If you will be billing your foreign clients in their currency, and receiving their payments in their currency, this field must be completed.

If you are updating an existing Client record, this field must only be changed if there is no current activity on the account (e.g, unpaid bills). In this way, new invoices will be sent and received in the Client’s currency. If you cannot clear an account, you may need to create a new client and job records so that all new revenues will be in the correct (foreign) denomination.

Rate Schedule

Separate Rate Schedules must be created for your foreign currency customers and referenced in the applicable Job records. These Rate Schedules must reference Labor, Material and Other Rate Tables that specify the revenues in terms of the foreign currency – as you wish them to appear on invoices.

Vendor Record – Service Provider Rates: Rate Schedule Id:
If foreign currency processing is implemented on your system, the Rate Schedule should be maintained in the currency of the subcontractor.

Labor Rate Table

Separate Labor Rate tables must be created for your foreign currency customers. These tables must specify the Labor revenue in terms of the foreign currency – as you wish it to appear on the invoices.

Note: Typically, you would not need to create a whole new set of individual labor rates. Instead, simply use the Labor Rate Table to provide appropriate revenue rates for the foreign currency.

Rate: Bill Type Id:
If your Bill Type Id is set to Unit Price, your Rate must be specified in terms of the foreign currency, as it will appear on the invoice.

If you are marking up labor based on costs (for Bill Types of Margin, Markup or Multiplier), remember that the costs will be maintained in your local currency. The Rate must include the adjustment from the local cost to the foreign revenue.

Other Rate Table

Separate Other Rate tables must be created for your foreign currency customers. These tables must specify the Other revenue in terms of the foreign currency – as you wish it to appear on the invoices.

Note: Typically, you would not need to create a whole new set of individual other rates. Instead, simply use the Other Rate Table to provide appropriate revenue rates for the foreign currency.

Level:
If used, levels are specified in terms of local costs.

Rate: Bill Type Id:
If your Bill Type Id is set to Unit Price, your Rate must be specified in terms of the foreign currency, as it will appear on the invoice.

If you are marking up other items based on costs (for Bill Types of Margin, Markup or Multiplier), remember that the costs will be maintained in your local currency. The Rate must include the adjustment from the local cost to the foreign revenue.

Material Rate Table

Separate Material Rate tables must be created for your foreign currency customers. If your inventory items are not ‘unit price’, these tables must specify the material markup such that your material costs (which are maintained in your local currency) are marked up to an appropriate foreign revenue. Note that this material markup will also be applied to miscellaneous materials.

Level:
If used, levels are specified in terms of local costs.

Rate:
Costs will be maintained in your local currency. The Rate must include the adjustment from the local cost to the foreign revenue.

Inventory Item

Pricing/Costing Tab

Unit Prices:
If you are not using price codes: Up to 9 unit prices may be specified per item. Your firm may choose to reserve one or more of these levels to use with foreign currency (e.g., levels 1-3 for local currency, 4-6 for foreign currency A, 7-9 for foreign currency B). If so, the price should be entered in terms of the foreign currency, as it should appear on the foreign customer’s invoice.

If you sometimes use price codes: since price codes only support 5 levels, your firm should limit the pricing structure to 5 levels. In this case, your firm may choose to reserve one or more of these levels to use of foreign currency (e.g., levels 1-3 your local currency, 4 for foreign currency A, 5 for foreign currency B). If so, the price should be entered in terms of the foreign currency, as it should appear on the foreign customer’s invoice.

Important Note: Be sure to correctly specify the Material Price Level in the Job and the Client Site records. These fields provide the default price levels for Job and COP invoices.

Pricing Tab

Prices for Price Codes used by foreign customers must be in terms of the customer’s currency.

Important Note: Be sure to correctly specify the Price Code in the Client Site record. This field provides the default price codes for Job and COP invoices.

Price Code

If foreign currency processing is implemented on your system, price codes for foreign customers must reference revenue in terms of the foreign currency in the Inventory Item’s Pricing tab.

Client Site Viewer

Contacts Tab

Material Price Level: Price Code:
If Unit Prices are implemented in Inventory, these fields must reference the appropriate Price Level / Price Code for this currency/customer.

PM Billing Tab

Bill Amount: Amount Earned:
If this is a foreign customer, these fields must be entered in terms of the foreign revenue the customer will be billed in.

Client Site Equipment Viewer

PM Schedule

Contract Value:
If this is a foreign customer, this field must be entered in terms of the foreign revenue the customer will be billed in.

Contract Cost:
This field must be entered in terms of your firm’s local currency, regardless of whether or not the customer is foreign.

Job Viewer

Main Tab

Material Price Level:
If Unit Prices are implemented in Inventory, this field must reference the appropriate Price Level for this currency/customer.

Rate Schedule Id:
If the client will be billed in a foreign currency, this field must reference the appropriate Rate Schedule for this currency/customer.

Financial Tab

Currency Id
This display-only field defaults from the Client record.

GL AR: GL Retainage:
If the Currency Id field is completed, these fields must match the corresponding ones in the Currency Master record.

Job Billing Item Viewer

Contract Amount: Contract Changes:
If this is a foreign customer, this field must be entered in terms of the foreign revenue the customer will be billed in.

Master Contract

If foreign currency processing is implemented on your system (and this Master Contract record is for a foreign customer), all Contract / Billing / Earned amounts must be entered in terms of your customer’s foreign currency.

Client Order Viewer

AR Tab

GL Deposit Account
If foreign currency processing is implemented on your system (and this Client Order is for a foreign customer), this account should be maintained in the customer’s foreign currency.

Items Tab

Unit Price: Extended Price:
If foreign currency processing is implemented on your system (and this Client Order is for a foreign customer), these fields should be entered in terms of the customer’s foreign currency, as it should appear on the invoice.

Deposits Tab

Requested: Received:
If foreign currency processing is implemented on your system (and this Client Order is for a foreign customer), these fields should be entered in terms of the customer’s foreign currency.

Client Order Processing

The Currency Abbreviation has been added to the Client Order Invoice, Order Acknowledgements, and GL Posting reports.

Work Order Viewer

If foreign currency processing is implemented on your system (and this Work Order is for a foreign customer), all Revenue amounts must be entered in terms of your customer’s foreign currency.

AR Sales

AR entries are NOT converted to your local currency. This means that invoices will appear in the foreign currency.  Job and Inventory History will be converted to your local currency.

AR Cash Receipts

Cash Receipts will be entered (to the appropriate banks account) in the foreign currency Note that a Sweep Account is not supported in Cash Receipts; a Bank Account must used. Transactions written to the GL AR Control, and Bank Accounts associated with a Currency Master Record in NOT be converted to local currency.

AR Discounts entered for Clients in foreign currency will be converted to local currency when they are posted to GL.

Differences between the foreign and local currency will be written to the Foreign Exchange Gain/Loss Account

AP and Purchasing:

Vendor Record 

Defaults Tab

Currency Id:
If you will be paying your foreign vendors in their currency this field must be completed.

Service Provider Rates: Rate Schedule Id:
If foreign currency processing is implemented on your system, the Rate Schedule should be maintained in the currency of the subcontractor.

Purchase Order

The cost of items purchased from foreign vendors will be converted to your local currency.

Vendor History will NOT be converted to your local currency. The amounts will appear as they were entered in the foreign currency.  The Currency Id and Factor will be recorded in these entries for historical/reporting purposes.

Main Tab

Currency Id:
This field is set from the Vendor record when the PO is created.

Currency Factor:
This display field uses the PO's Release Date to look up the appropriate conversion factor lin in the Currency Master Record.

AP Journal and Checks

AP Entries will be recorded in the foreign currency. AP Checks will be issued in the foreign currency (on the appropriate bank account),

AP Discounts entered for foreign Vendors will be converted to local currency when they are posted to GL.

General Ledger / Bank Accounts

Bank Transfer

Currency Conversion is NOT supported for Transfers from a foreign to local currency and vice versa.

Bank Deposit

 

Bank Reconciliation

 

GL History

GL History will SOMETIMES be converted:

Transactions written to the GL AP Control, GL AR Control, and Bank Accounts associated with a Currency Master Record in NOT be converted to local currency.

Transactions that record expenses will always be converted to your firm’s local currency.

Differences between the foreign and local currency will be written to the Foreign Exchange Gain/Loss Account