Accounting currencies

Requirement

A company must have one accounting currency, but accounting transactions can be denominated in a different source currency. In some cases, for reporting reasons, a third amount in a third currency is required.

M3 solution

Three transaction amounts can be calculated by M3 in three different currencies:

  • An amount in the local currency that is used for accounting
  • An amount in a foreign currency that is the source currency of the invoice or of other transactions
  • An amount in a third currency, which is automatically calculated by M3, based on the amount in the local currency and on exchange rates between the local currency and the third currency

The amounts that are used for government reporting, VAT, annual reports, and audit files are based on the amounts in the local currency.

You must set the Argentine peso as the local currency. You can set another currency, for example the US dollar, as the third currency, for the handling of invoices in another currency in parallel.

For customer invoices that are issued in US dollars and for supplier invoices that are received in US dollars, these amounts are stored in M3:

  1. The customer invoice or the supplier invoice is issued or received in the foreign currency, that is, the US dollar.
  2. The invoice amount is converted into the local currency, that is, the Argentine peso.
  3. The invoice amount in the local currency is then converted into the third currency, that is, the US dollar.

Configuration guidelines

See ‘Enabling Financial Management’ in the M3 Business Engine User Documentation Infocenter.

Program ID Program name Description or comment
CRS055 Currency. Open Define each required currency.
CRS058 Exchange Rate. Open per Date For each division, define each required exchange rate per date.
MNS100/G Company. Connect Division Specify this information for each division:
Local currency
Specify ARS.
Currency conversion method
Specify whether the amount in the foreign currency must be multiplied or divided by the local currency rate to obtain the amount in the local currency. You cannot change this setting after the system has started.
CRS750/F Settings - General Ledger Set the Third currency field to the required third currency, for example USD.