What are currency codes?

SunSystems is a multi-currency system, enabling dual base currency accounting. This powerful capability uses the currency details set up in the system. Up to four different currency values can be held on every transaction. The system calculates any missing currency values automatically, if they are required. Additionally, transactions may hold a fifth currency code and rate, which can be used for calculating a fifth currency value in reporting.

The currency of each value is identified by a 'Currency Code'. You normally create one currency code per currency. For example, you might use USD for US dollars, or EUR for euros. If you are transferring to or from a bank or other clearing system you should use the SWIFT currency codes.

Once you have set up a currency code, you can enter the exchange rates used to convert any values expressed in the currency, into another currency. For example, you might need to define the exchange rate required to convert a EUR value into US dollars.

Two types of exchange rate can be held, period rates that apply for a period, and daily rates that apply to particular calendar dates.

What Currency Code Details are Maintained?

Currency codes are defined using Currency Codes (CNC). Each currency is identified by a currency code. You can enter other general information about the currency including:

  • the currency unit name, subunit name, and currency gender all of which are used to convert the currency value into words for reports and documents (see Currency Gender below)
  • the accounts to be used to post realized and unrealized gains and losses
  • the accounts to be used for balancing transactions generated by the payment processes
  • the number of decimal places used for the currency amounts
  • whether daily exchange rates can be held and used for the currency.

The currency code facilities can also be used to define non-currency conversion rates, for example time recording rates per employee type, quantity conversion rates and so on.

Currency Gender

You can set the gender of the currency. This determines the words used in the sentence construction for statements, remittances, and cheques by the reporting modules. This is the gender of the currency in the language used for printing documents.

You can include the currency unit name and subunit name, such as dollars and cents, in documents produced by the reporting modules. This is particularly useful when amounts are converted to words on cheques.