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.

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 the local currency. 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.