Setting up Multicurrency for Microsoft Dynamics GP can be a bit tricky for the following reasons:
- It’s easy to confuse Translation setup and Transaction setup since both use multicurrency. A given company can use one, the other, both, or neither.
- Each “Exchange Rate Table” is a set of rates relative to a company’s functional currency (not a specific currency); yet, rates are stored at the system level so how do we make sure we don’t mix rates against the wrong functional currency?
- There is a complex array of possible setups to consider like: gain\loss accounts by currency or just one set for the company, should we use the same buy and sell rate table or use separate tables, etc.; each decision effects how the rate tables should be configured and named.
- How to ensure translation will work for Management Reporter.
- Finally, undoing the design is a nightmare so setting up right the first time is the real win!
Understanding the Exchange Table Naming Convention
I have developed both an Exchange Rate Table naming convention and setup worksheet which can create rapid setup and configuration of multicurrency. Each exchange rate table has a three segment naming convention using ISO standards.
Avastone Technologies has created a setup worksheet that asks a series of questions about how a given foreign currency is to be used for a given company. Each column explains in the notes what the question is and what it means. For example, the question “Used for Multicurrency Transactions” asks the question if this foreign currency for this company will be used for multicurrency transactions. The response is “Yes” or “No”. Once I get these questions answered by my client, I have everything I need to know to setup multicurrency – accurately, efficiently, and correct the first time!
Click here to visit our website to see a screenshot of the setup worksheet and learn how you can get a copy for yourself!
The data from the first worksheet is calculated (meaning pivot tables are refreshed) resulting in instructions on how to setup multicurrency. Here is a list of setup windows that above questions will answer how to setup:
- Currency Setup Window
- Multicurrency Exchange Rate Table Setup
- Multicurrency Access Setup
- Multicurrency Setup
- Select Multicurrency Rate Types
- Posting Accounts Setup
- Multicurrency Posting Account Setup
- Multicurrency Posting Account Setup by Rate Type
- Multicurrency exchange Rate Maintenance
Below is an example of the resultsfrom the above questions. They illustrate the complexity of setting up only three companies for multicurrency transactions in which only two companies need to report currency translation.
Click here to visit our website to see some example results.
Contact Avastone Technologies at (920) 687-4797 or [email protected] for a free Multicurrency Setup Worksheet. Fill it out and see what results you get. I would not attempt multicurrency setup without it!
By Shane LaBarge, CPA, MBS, MSIS, Dynamics GP Consultant, Avastone Technologies LLC, Microsoft Dynamics GP Partner – Fox Cities and Milwaukee WI