Add New Currency

If Multiple Currencies are being used, the corresponding rates are configured in the "Currency Rates" window.

To add/modify a currency:

1) Select Setup from the G/L menu and choose Currency Rates or click the “Currency Rates” button under the General tab of the Connected Desktop.  

The following Currency Rates window will appear:

NOTE: The currency code “HOME” with an exchange rate of 1 will already be present. All customers, vendors, and bank accounts that do NOT require exchange calculations will have this assigned by default.

2) Click Add.

3) Enter a Currency Code (four-character max). This code will be assigned to customers and vendors. The code will also be visible when entering transactions and on some reports.

4) Enter an Exchange Rate. For example, if you are a Canadian based business selling to the United States a rate of 1.28 will multiply each transaction by 1.28 ($1 USD = $1.28 CAD).

TIP: If a rate is being modified, the new rate will only affect new transactions while unposted entries will keep the rate assigned when added.

5) Optionally enter a Rate URL that can be used for reference to update rates.

6) Enter the following A/R General Ledger accounts for that currency:

• Exchange Acct No: This account is used for calculating the exchange portion of a foreign currency sale.
• Gain/Loss Acct No: This account is used to track the gain or loss when a cash receipt is entered that has a different exchange rate than the original invoice being paid.
• Default A/R Acct No: This account is used to easily identify Accounts Receivable amounts that will be recorded in this foreign currency.
  

7) Enter the following A/P General Ledger Accounts for that currency:

• Exchange Account No: This is used for calculating the exchange portion of a vendor purchase.
• Freight Accounts No and Rate: This account should be a Liability that records the estimated freight value for an item on a Purchase Order when the freight expense will be from a third party.  The Freight Rate is NOT an exchange rate but rather a factor for determining the freight percentage.  The freight rate can be specified by the currency code, item, or vendor.
• Duty & Tax Account No and Rate: This account should be a Liability that records the estimated duty and tax value for an item on a Purchase Order when the duty and tax expense will be from a third party.  The Duty & Tax rate is NOT an exchange rate but rather a factor for determining the duty and tax percentage.
• Default A/P Acct No: This account is used to easily identify the Accounts Payable amounts that will be recorded in the foreign currency.
   
  NOTE:  Refer to the Cost Factor (Landed Cost) Section of the Purchase Orders - Inventory Control Companies of the CONNECTED User Guide for examples of freight and duty & tax calculations.

8) When completed adding or editing the currency, click Save to complete the changes.