AutoCount Module: Multi-Currency Module
The Key to Managing Multi-Currency Transactions
Firstly, expanding your business internationally is exciting. But handling transactions across different currencies can be a daunting task. To clarify, tasks like tracking exchange rate fluctuations, calculating gains or losses, and generating reports can drain time and resources. Therefore, the AutoCount Multi-Currency Module is the ultimate solution. To sum up, this powerful feature automates multi-currency management, empowering businesses to handle international transactions with accuracy and efficiency. So, with seamless integration, precise conversions, and detailed reporting, the AutoCount Multi-Currency Module is essential for any globally operating business.
AutoCount Multi-Currency Module 1.0 Video Guide
Understanding AutoCount Multi-Currency Module
This module allows transaction in multi-currency. The system will auto-calculate gain/loss in currency exchange and post to Journal and G/L entries accordingly.
AutoCount’s Multi-Currency module primarily focuses on foreign currency revaluation realized upon payment. This means that revaluation occurs only when payments, whether accounts receivable or accounts payable, are made. The module calculates the difference between the currency rate on the invoice and the payment, reflecting this difference in the revaluation process.
Exploring AutoCount Advanced Multi-Currency Module
The Advanced Multi-Currency module takes currency management a step further. It introduces the concept of unrealized foreign currency revaluation, performed at the end of each month or fiscal year. This revaluation encompasses outstanding invoices and purchase invoices, using the currency rate on that specific day for accurate reporting. This module provides a more precise reflection of the financial state of the business.
Additionally, the Advanced Multi-Currency module extends its capabilities to foreign bank accounts. Currency rate changes impact foreign bank accounts, resulting in depreciation or appreciation. This module ensures that these fluctuations are accurately recorded, contributing to a comprehensive financial overview.
Comparing Unrealized Gain/Loss Module
AutoCount also offers an AutoCount Unrealized Gain/Loss module, which is an alternative to the Advanced Multi-Currency module. This module calculates unrealized gains or losses arising from currency rate changes. However, it is important to note that the Advanced Multi-Currency module provides a more comprehensive solution by valuing outstanding invoices, purchase invoices, and foreign bank accounts.
Making the Right Choice
- Choose the AutoCount Multi-Currency Module:
- if you require foreign currency revaluation solely upon payment, accommodating realized gains or losses.
- Opt for the AutoCount Advanced Multi-Currency Module:
- when seeking a more accurate financial reflection, with unrealized foreign currency revaluation and management of foreign bank account fluctuations.
Configuring Currencies
Accurate currency configuration is the first step to unlocking the full potential of the AutoCount Multi-Currency Module.
1. Navigate to Currency Maintenance
Go to General Maintenance > Currency Maintenance.
2. Click New and input
- Currency Code: For example, USD.
- Currency Name: For example, US Dollar.
3. Adjust exchange rates
- Firstly, click Currency Rate. Then click Add.
- After that, set the effective date and exchange rate (e.g., 2024-11-20, Rate: 4.6000).
Pro Tip: Update exchange rates in the AutoCount Multi-Currency Module regularly—weekly or monthly—to reflect market conditions.
Foreign Currency Revaluation
This is to revaluate all outstanding transaction in foreign currency, and to find out if there is any unrealized gain/loss according to current exchange rate. Each revaluation will auto generate journal entries should there is unrealized gain/loss. The last revaluation rate will be recognised and compared with subsequent revaluation or payments.
After Saved;
1. The revaluation is not allowed to edit. You may only view, print or delete the revaluation.
2. Journal Entry will be auto-generated should there was unrealized gain/loss.
3. Not allowed to edit or delete transactions (in foreign currency) prior to the date of revaluation.
4. The revaluation rate will be recognised as the last currency rate, and will be referred to:
- in subsequent revaluation to compare with the current rate, to derived at another unrealized gain/loss (if any).
- in subsequent payment to compare with the exchange rate, to derived at the Gain/Loss on Foreign Exchange.
Creating Debtors and Creditors in Foreign Currencies
The AutoCount Multi-Currency Module makes it simple to manage international clients or suppliers.
1. Navigate to Debtor Maintenance or Creditor Maintenance
Firstly, go to A/R > Debtor Maintenance or A/P > Creditor Maintenance.
2. Assign Currency
Secondly, select the desired currency for the debtor or creditor (e.g., EUR or JPY).
Note: Once an invoice is issued, the selected currency cannot be changed. Create a new account for any changes.
Issuing Invoices in Foreign Currencies
The AutoCount Multi-Currency Module automates the creation of invoices in foreign currencies.
1. Navigate to Sales Invoice
Firstly, go to Sales > Invoice and create a new invoice.
2. Select Debtor
Secondly, choose the debtor and confirm the assigned currency (e.g., USD).
3. Enter Transaction Details
After that, fill in the details, and the system will auto-calculate totals using the latest exchange rate.
Processing Payments
Processing payments in the AutoCount Multi-Currency Module ensures accuracy and saves time.
1. Navigate to A/R Receive Payment
Firstly, go to A/R > A/R Receive Payment.
2. Choose Debtor and Payment Method
Secondly, select the debtor and specify the payment method (e.g., Bank Transfer).
3. Select Knock-Off Date
After that, tick the Knock-Off Date to align the payment with the transaction date. Finally, save it.
4. Auto-Calculate Gains/Losses
The system automatically calculates and records any currency gain or loss.
Tracking Currency Gain/Loss
One of the most valuable features of the AutoCount Multi-Currency Module is its ability to track gains and losses due to exchange rate fluctuations.
1. Open Profit and Loss Statement
Firstly, go to G/L > Profit and Loss to access the report.
2. For detailed transaction-level insights
- After that, navigate to Edit > View Posting Details.
- Review specific gain/loss values.
Example Calculation:
- Transaction Amount: 250 units.
- Initial Exchange Rate: 4.1000.
- New Exchange Rate: 4.3000.
- Gain = ( 250 times (4.3000 – 4.1000) = 50 ).
Comprehensive Reporting with AutoCount Multi-Currency Module
The AutoCount Multi-Currency Module offers a range of reporting tools to help businesses make informed decisions.
1. Dual-Currency Ledger
Simplify financial analysis by converting all transactions into a single foreign currency:
- Firstly, access G/L > Ledger Report > Dual-Currency Ledger.
- After that, you can view consolidated totals for accounts in the selected currency (e.g., USD).
2. Multi-Currency Ledger
Gain detailed insights into transactions recorded in both the base and foreign currencies:
- Firstly, navigate to G/L > Ledger Report > Multi-Currency Ledger.
- After that, you can analyze breakdowns of cash flow and account balances.
3. Debtor Aging Report
Track outstanding balances in both local and foreign currencies:
- Firstly, go to A/R > Debtor Aging Report.
- After that, enable Show Local Currency under More Options.
- Generate the report to see side-by-side comparisons of currency totals.
Audit Trail Listing
This feature allows you to track and review invoices and payment records with ease.
1. Navigate to A/R Invoice Entry
Firstly, go to A/R > A/R Invoice Entry. After that, click Print Listing.
Example:
(Sample Report)
Additional Features: This functionality is also available under A/P Invoice Entry and A/P Payment.
Why Choose AutoCount Multi-Currency Module?
The AutoCount Multi-Currency Module provides unmatched efficiency and accuracy for managing international transactions. Key benefits include:
Streamlined Operations
Firstly, it automates currency conversions, gain/loss calculations, and transaction management.
Improved Accuracy
Secondly, it eliminates errors with automated calculations and exchange rate tracking.
Time Savings
Thirdly, it focuses on business growth instead of manual calculations.
Enhanced Decision-Making
Finally, it accesses detailed reports to better understand financial performance.
Advanced Features for Complex Scenarios
Overcoming Challenges with AutoCount Multi-Currency Module
In addition, managing multi-currency transactions often involves more than basic setup and daily operations. To clarify, advanced requirements such as balance adjustments, accurate gain/loss calculations, and precise handling of fluctuating exchange rates can make things complex. However, the AutoCount Multi-Currency Module is designed to tackle these challenges head-on. With advanced functionalities, it ensures precision, flexibility, and seamless handling of intricate financial scenarios. This guide explores the advanced features of the AutoCount Multi-Currency Module to simplify your multi-currency management.
AutoCount Multi-Currency Module 2.0 Video Guide
Maintaining Opening Balances for Multi-Currency Accounts
Accurate opening balances are fundamental for smooth financial operations in the AutoCount Multi-Currency Module.
1. Navigate to Opening Balance Maintenance
Firstly, go to G/L > Opening Balance Maintenance to review balances for debtor, creditor, and home currencies.
2. To add balances
- Secondly, navigate to A/R > Invoice Entry and create a new invoice.
- After that, fill in the details and click Save to update the opening balance automatically.
3. Verify balances using the G/L > Ledger Report
- Use filters to review specific accounts or customize columns by right-clicking and selecting Column Chooser.
Pro Tip: Add DR (Debit) and CR (Credit) columns to review foreign currency balances like USD or EUR more effectively.
Adjusting Currency Home Balances
Currency discrepancies occur when exchange rates change during transactions. The AutoCount Multi-Currency Module provides tools for accurate adjustments.
1. Create a New Bank Account
Go to G/L > Account Maintenance and set up a new bank account with the correct Currency Code (e.g., USD).
2. Check discrepancies in the Ledger Report
- Example: RM 4,300 deposited at a 4.0 rate = USD 1,000. Spending the same USD 1,000 at a 3.8 rate creates a discrepancy of RM 100.
3. Adjust balances using the G/L > Journal Entry
- Record the RM 100 discrepancy in the gain or loss account and save.
Pro Tip: Use a 1:1 exchange rate for adjustments recorded in the home currency.
Viewing Profit and Loss Statements in Foreign Currencies
This module allows businesses to generate profit and loss (P&L) statements directly in foreign currencies.
1. Navigate to Profit and Loss Statement
Go to G/L > Profit and Loss Statement.
2. Select Currency
Choose the desired currency (e.g., USD) and click Preview.
3. Compare Statements
Analyze statements in different currencies (e.g., USD and MYR) for better financial insights.
Example: A U.S.-based company with a branch in Malaysia can analyze profits directly in USD without converting MYR manually.
Automating Item Costs and Prices
Efficient management of costs and pricing is a key advantage of the AutoCount Multi-Currency Module.
1. Create Purchase Invoice
Go to Purchase > Purchase Invoice, enter the details, and save the transaction.
2. Automatic Cost Update
The system automatically updates the item’s cost in the home currency.
3. Enable price automation in Tools > Options
- Check Auto Convert Sales Price or Purchase Price Based on Currency Rate and save.
- Re-login to activate the feature.
4. Create Invoices
Generate sales or purchase invoices, and prices will automatically adjust to the customer’s assigned currency.
Pro Tip: Customize item pricing in Stock > Item Price by Currency Maintenance.
Item Price by Currency Maintenance
Allows businesses to set item prices based on specific currencies for better customization and accuracy in pricing.
1. Navigate to Item Price by Currency Maintenance
Go to Stock > More Stock Maintenance > Item Price by Currency Maintenance.
2. Adjust Item Prices
Complete the necessary settings, then click Edit to modify item prices.
3. Set Item Price
Enter the desired price for the item and click OK to save the changes.
Important Note: To use this function, ensure that the Multi-Pricing option is unchecked.
Refining Currency Rate Decimals
Decimal precision is critical for large transactions. The AutoCount Multi-Currency Module ensures calculations remain accurate.
1. Navigate to Decimals in General
Go to Tools > Options > Decimals in General.
2. Adjust Currency Rate
Set the currency rate decimals (up to 12 places) and save.
3. Re-login
Log out and log back in to apply the changes.
Pro Tip: Use fixed decimals for high-value transactions to ensure accuracy.
Managing Access Rights
The AutoCount Multi-Currency Module allows administrators to control user access to sensitive currency functions.
1. Navigate to Access Right Maintenance
1. Go to General Maintenance > Access Right Maintenance.
2. Modify Permissions
Add or remove permissions under Currency Maintenance as needed.
3. Save Changes
Click Apply to save the changes.
Conclusion
The AutoCount Multi-Currency Module simplifies advanced financial scenarios, making it an indispensable tool for businesses handling international transactions. Automate operations, ensure accuracy, and gain valuable insights into your financial performance.
Ready to optimize your global operations? Activate the AutoCount Multi-Currency Module today and experience the difference!
Frequently Asked Questions
Can I change a debtor’s currency after an invoice is issued?
No. The currency is locked after an invoice is created. Create a new account for a different currency.
How often should I update exchange rates?
Update rates as frequently as market fluctuations occur, typically weekly or monthly.
What happens if exchange rates change after a transaction is recorded?
The AutoCount Multi-Currency Module automatically calculates and reflects any gain or loss in the reports.
How do I handle discrepancies in home currency balances?
Use the Journal Entry feature in the AutoCount Multi-Currency Module to accurately adjust gains/losses.
Can I view profit and loss statements in foreign currencies?
Yes, generate P&L statements in your preferred currency via G/L > Profit and Loss Statement.
What’s the difference between Unrealized Gain/Loss and Advanced Multi-Currency?
Unrealized Gain/Loss reverses adjustments daily, while Advanced Multi-Currency maintains continuous updates until invoices are settled.
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