Microsoft Dynamics GP – How to set up Multicurrency Management

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BDO

Any company dealing with foreign vendors or customers for purchases and sales transactions may wish to set up the foreign currencies. To use more than one currency, one must set up Multicurrency Management in Microsoft Dynamics GP. Here are the necessary steps to do so:

Step 1: Prerequisites

Complete the following prior to setting up Multicurrency Management.

  1. System manager
  2. General ledger
  3. Payables and Receivables Management (if you use these modules)
  4. Step 2: Set up Currencies

Administration > Setup > System > Currency

Set up as many currencies as required for the business (Figure 1).

Figure 1

 

Note: You should not delete a currency if…

  1. Its use is on posted or unposted transaction.
  2. Any company has access to the currency.

 Step 3: Create Exchange Rate Table and Enter Exchange Rate

An Exchange table is required for each of the currencies that are being set up. The Exchange Rate Table setup is a one-time task in Dynamics GP. Exchange rates may be added to the table periodically. Exchange rate tables can be used in multiple companies, provided the company has the same functional currency.

Administration > Setup > System > Exchange Table (Figure 2)

Figure 2 – Select the Rates button to enter currency

 

Alternatively, you can use

Administration > Cards > Exchange Table (Figure 3)

Figure 3 – If required, you can delete the Exchange rate table only after removing company access to the table. This will delete all assigned exchange rates as well.

 

Step 4: Provide Company Access to the Currency and Exchange Rate Table

Administration > System > Multicurrency Access

  • Select the Currency and mark the Access checkbox beside the company.
  • Select the Exchange Rate Table ID and mark the Access checkbox.
  • To inactivate currency or exchange rate table, mark inactive checkbox (Figure 4).
Figure 4

 

Step 5: Set up Functional Currency and Multicurrency Management Option

Finance > Setup > Financial > Multicurrency (Figure 5)

Figure 5

 

Step 6: Assign Rate type ID

Rate type helps to identify the exchange table to be used during transactions. Three rate types (Buy, Sell and Average) are available but an unlimited number of rate types can be created and used (specific to vendors or customers). Use the Multicurrency setup window to create new rate types.

Assigning rate type to exchange rate table (Figure 6).

Finance > Setup > Financial > Rate Types

Figure 6

 

Use the “Accounts” button to set up posting accounts for each rate type that you have assigned to a currency.

Step 7: Multicurrency Posting Account Set Up

Accounts can be selected for an entire module, for specific currency, or for each rate type assigned to a currency.

  1. Administration > Setup > Posting > Posting Accounts (Entire module)
  2. Finance > Setup > Financial > Currency Accounts (For currency)
  3. Finance > Setup > Financial > Rate Types > Accounts

Step 8: Assigning Currency to Posting Accounts.

Financial > Cards > Financial > Account Currencies

  • Mark checkbox beside the currency to provide an access to currency for that account (Figure 7)
Figure 7

 

Detailed explanations of these steps are available in GP’s Multicurrency Management guide.

You can also visit https://itsolutions.bdo.ca to get more information about solutions provided by BDO.


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