Each entity can have one base currency with multiple foreign currencies set up against it. If you operate multiple entities, they can all have different base currencies. To manage these entities, you can set up a Group Consolidating Entity and use its base currency to consolidate all the entities. See Using Multi-Entity Consolidation for more details.

If you want to deal with a customer or supplier in multiple currencies, set up separate master records for each currency. 

Raising Foreign Currency Transactions

Deal with non-base currency customers and suppliers in their own currency or that of their bank. From your company’s perspective, these are foreign currency companies. The transaction will carry the exchange rate at that time, along with the calculated base currency amount. 

Allocating Foreign Currency Payments

When you receive payment for a transaction you raised, it will be in the currency of the supplier, customer, or that of their bank. It will carry the exchange rate at the time of the bank payment or lodgement, along with the base currency amount. When the payment and invoice are allocated, any gain or loss resulting from exchange rate fluctuation will be calculated and self-reversing journals will be posted to the GL Currency Gain/Loss account.  

At the end of each Financial Period, it is advisable to reconcile ledgers and revalue the open Items to reflect the current Exchange Rates rather than historical ones. 

See:

Foreign Currency Overview (8.0) - AIQ Academy

Add Edit Currency in a single Entity (8.1) - AIQ Academy

Using Foreign Exchange Revaluation Journals 

Using Multi-Entity Consolidation 

Using Codes Maintenance 

Rates of Exchange can be set up and maintained in Setup > Codes Maintenance as described below. 

Only one base currency can be nominated. Exchange rates are expressed as 1 Unit of Base Currency = X Units of Foreign Currency. In periods of high Exchange Rate Volatility, revise, and update exchange rates frequently to provide the most accurate reflection of your Trading and Balance Sheet.

The default exchange rates set up in Codes Maintenance can be overridden at transaction entry stage if necessary. 

To Add New Currencies:

1. In the Currencies tab, click Add New Currency.
2. In the Code dropdown, select the Currency required. The dropdown contains all the Currencies listed under ISO 4217 along with standardised Mnemonics (e.g., "GBP" instead of "STG"). 
3. Description, Units, and Symbols will autofill with the connected data but can be edited as needed.
   • Enter the Description associated with the relevant ISO currency code. This is displayed on various system screens and reports where relevant. The description will be defaulted to the ISO currency code name but can be overwritten by if necessary.
   • Enter the Units associated with this currency code, e.g. Pence, Cents etc. This will be displayed on items like cheque layouts.
   • The currency Symbol will be displayed on screens, reports, printed orders and invoices.
4. Tick Base to nominate the currency as a Base Currency. There can only be one Base Currency in the system. This setting cannot be changed without assistance from your local support team. Non base currency customers and suppliers can be set up and dealt with in their own currency. When transactions are raised against these 'foreign currency' customers or suppliers, they are raised using the currency of that customer or supplier and the transaction also carries the exchange rate in force at the time, along with the equivalent calculated base currency amount.
5. Manually enter the Rate or update it from TransferMate. The exchange rate will be the default exchange rate when entering transactions that involve foreign customers, suppliers or bank accounts. Exchange Rates must be recorded as 1 Unit of Base Currency = X Units of Foreign Currency and not the inverse. The exchange rate for the base currency will always be 1. In periods of high exchange rate volatility, exchange rates will be revised and updated frequently in order to provide the most accurate reflection of your Trading and Balance Sheet. 
6. Click Save.

To Edit Currencies:

1. Amend an existing Currency by clicking Edit next to its entry in the table.
2. Complete your edits. You can also View Rate History and add a historical rate.
3. Click Save. 

To Maintain the Exchange Rate:

You can maintain Exchange Rates manually or use TransferMate (see relevant section). 

You can update Exchange Rates:

• Entity-level: Click Update next to the relevant entry. Use this if Exchange Rates are fixed because of Forward Contracts. In this example, the rates that are managed at group level are not available for updating:
• Group level: See Using Multi-Entity Consolidation for more details. This lets you manage rates centrally.
• In Bulk: Click Update All Rates. At the close of each day, the system pulls exchange rates from TransferMate. This will only be available if rates are not managed at group level.

Step One: Set up an Entity's Base Currency

This base currency is the currency against which foreign exchange rates will be applied. If you have multiple entities, each entity must have a base currency. Although this is normally assigned during company setup, you can change it if no transactions have been recorded in the entity yet.

See: 

Creating a New Entity 

Managing Company Details & Settings 

1. Go to Setup > Company Details & Settings.
   
2. Under the Company Details tab, select the required currency from the Base Currency dropdown. Complete any other relevant details. 
3. Click Save.

Step Two: Set up Currency Code Defaults

If your customers or suppliers predominantly use a given currency, setting it as a default will save time when creating new customers and suppliers.

See:

Managing Default Settings 

1. Go to Setup > Default Settings. 
   
2. Click Open next to Customer Defaults or Supplier Defaults as relevant (Items and GL Accounts are automatically in base currency).
3. Select the appropriate base currency from the Currency dropdown. Complete any other relevant details. 
4. Click Process.

Step Three: Assign Currency Codes to your Customers and Suppliers

When you set up a new Customer or Supplier, their currency code defaults to what was set up in Step 2 above. However, you can select another from those set up in the system. This then becomes the default during transaction entry stage.

This Supplier Account has the EUR set as their default Currency in the Account Details tab:

The default currency along with its equivalent amount in company base currency will appear during transaction entry stage. At this point, you can still enter a different rate in the Exchange Rate field if necessary.

See:

Managing Customer Master Records 

Managing Supplier Master Records 

The system lets you maintain currencies and exchange rates for all entities in your group in one place. 

Users must have the permission “User can update Exchange Rates Across Consolidation Groups”:

Group Currency Rate Table

There are three ways to access the Group Currency Rate table: 

• Consolidation Manager > Consolidation Exchange Rates tab > Maintain Transactional Exchange Rates for Group. View or update rates here.
• In the Entity Listing grid, go to the Actions dropdown of the Consolidation Entity and select Update Exchange Rates Across Group.
• In the Consolidation Entity, go to Setup > Codes Maintenance > Currencies. 

To update a rate, click on Update to Latest Rate, edit the System Rate, and click Process. 

Example: Effects of updating Exchange Rates at Group level

This example uses a STG as the base currency in the Consolidation Entity. When you update an Exchange Rate in the Group Currency Table, from Sterling to, for example, Euro, it will not just change the STG/EUR Rate in all Subsidiaries. Exchange rates are interdependent so any subsequent change in the relationship between STG and EUR will impact the USD to EUR relationship. For example:

• 1 £ Sterling = 1.25 € Euro
• 1 £ Sterling = 1.55 $ Dollar
• 1 $ Dollar = 0.80645 € Euro

Similar changes in the relationship between Sterling and the other Base Currencies will also cause modifications in other inter-currency relationships.

How is the exchange rate of a currency calculated when a subsidiary has a different base currency to the top consolidation entity?

Example for JPY: The exchange rates set in the top consolidation entity determine the rates for subsidiaries.

Top Consolidation Entity Base Currency: USD

• EUR to USD = 0.987650.
• JPY to USD = 141.000

Sub-Consolidation Entity Base Currency: EUR

• USD to EUR = 1.012504 USD. This is calculated based off the USD to EUR rate from top consolidation entity.
• JPY to EUR = 142.763EUR. This is calculated using the formula USD to JPY * EUR to USD (141 * 1.012504).

See:

Add Edit Currency in a single Entity (8.1) - AIQ Academy
Add Edit Currency at Group Level (9.1) - AIQ Academy

TransferMate lets you import the latest currency exchange rates. These become the default rates used during transaction entry but can still be overridden at this stage. TransferMate exchange rates can be updated as often as your company's Foreign Currency Policy requires. For more information on setting up TransferMate, see Processing Foreign Supplier Payments using TransferMate.

Update Rates at Group level

If you are maintaining currencies and exchange rates at the Group Level, proceed as follows:

1. Either log into the consolidation entity or go to Actions > Update Exchange Rates Across Group.
2. The Currency table allows the following: 
   • Update the exchange rate for individual currencies to the current TransferMate rate by clicking Update To Latest Rate. 
   • Update all currency rates to the current TransferMate rates by clicking Update All to Latest Rates. 
   • Update Currency Rates manually by clicking Edit and editing the rate field for the currency in the field.

Update Rates at Entity level

1. Log into the relevant entity.
2. Go to Setup > Codes Maintenance > Currencies.
   
3. Click Update next to the relevant currency or Update All Rates.  

See:

Add Edit Currency in a single Entity (8.1) - AIQ Academy

Add Edit Currency at Group Level (9.1) - AIQ Academy