This is an overview of how to use the Currency conversion tool. With the usage of multi-currency handling the following currency types are available in the system:
| Type | Description |
|---|---|
| Transaction currency | This is the currency in which all transactions are introduced to the system. The transaction currency is set at transaction entry. |
| System currency | This is the main currency for the installation. Analysis and reporting can be made in system currency. The system currency is defined in Work with companies. |
| Reporting currency | This is a second system currency. Analysis and reporting in the General Ledger can be made using the same methods as for the system currency. It is calculated from the system currency using a fixed exchange rate. The reporting currency can also be viewed in several enquiries and listings in the subledgers. The reporting currency is defined in Work with companies. |
| Primary currency | This is main currency of your customers and suppliers. All transactions for the customer/supplier are automatically handled in the primary currency, unless another currency is entered manually for each individual transaction. Customer/supplier transactions and balances are saved in primary currency, as well as system currency. The primary currency is defined in the Business partner file. |
| VAT reporting currency | All VAT amounts are held in system, reporting and transaction currency as well as VAT reporting currency. These amounts are used for VAT reporting to trader countries where you are obliged to report VAT in a currency different from the system currency. The VAT reporting currency is defined in Work with countries. |
| Base currency | This is used when calculating the system currency amount from a transaction currency amount. It is a currency concept needed to meet the requirements for triangulation calculation and as such the amounts in base currency are never actually stored in the system. All transaction currency exchange rates introduced in to the system should be entered in relation to the base currency rather than the system currency. The base currency is defined in Work with companies, and is defaulted to be the same as the system currency. |
The following functionality is available. See the applicable Related topic below for more information.
| Functionality | Description |
|---|---|
| System currency conversion | Describes the process of changing the system currency in a company by converting the entire IBS Enterprise database. All applicable fields held in system currency in the database, on transaction level as well as balance level, will be recalculated using the fixed exchange rate you enter when you run this routine. |
| Primary currency conversion | Describes the process of changing the debtor's or supplier's primary currency. Running the primary currency conversion is an iterative process to be run when the main currency of your customer/supplier changes. |
| VAT reporting currency conversion | Describes the process of changing the VAT reporting currency for one of your trader countries. Running the VAT reporting currency conversion is an iterative process to be completed when the countries you are obligated report VAT changes to a different currency than the one previously defined for the country. |
| Triangulation and inverse rate handling | Describes the process of changing the base currency, (i.e., the currency in relation to which all exchange rates are introduced) and the Reversed rate flag defined in Work with companies. |
| Reporting currency calculation | Describes the process of updating amounts in Reporting currency for historic transactions. This routine is useful for companies that want to start using the Reporting currency functionality. |