Ideal Online Documentation

30080 A/R MAINTENANCE
AR4-02 Currency Code

 

PURPOSE

 

The currency code maintenance program is used to add, modify and delete A/R currency codes. Currency codes are typically used to differentiate different currencies (ie CN$ and US$, etc.), but they can also be used to indicate different banks and/or different G/L accounts. You must setup at least one currency code, your base currency, but you may setup as many codes as you like. Generally, you would setup A/R currency codes for only those currencies in which you receive customer payments. A/R currency codes may be setup to affect the same G/L accounts as A/P currency codes.

 

Currency Code Maintenance is accessed from:

  • A/R Maintenance menu

 

PROCEDURE

 

When you select Currency Code Maintenance at the Accounts Receivable Maintenance menu you are taken to the A/R currency code maintenance screen.

 

  A/R CURRENCY CODE MAINTENANCE DISPLAY 

┌────────────────────────────────────────────────────────────────────────────────┐
│05/09/07                    D E M O   C O M P A N Y                             â”‚
│                                                                                â”‚
│   CURRENCY CODE                           __                                   â”‚
│                                                                                â”‚
│01 DESCRIPTION                                                                  â”‚
│02 EXCHANGE RATE                                                                â”‚
│03 G/L...EXCHANGE G/L ACCT INCREMENT                                            â”‚
│04 G/L...SALES ACCOUNT INCREMENT                                                â”‚
│05 G/L...A/R CONTROL                                                            â”‚
│06 G/L...BANK ACCOUNT                                  (SEE TRANSACTION TYPES)  â”‚
│07 G/L...SERVICE CHARGE                                                         â”‚
│08 G/L...DISCOUNTS TAKEN                                                        â”‚
│09 G/L...DIRECT SALES (DIRECT BILL)                                             â”‚
│10 G/L...CARTAGE (DIRECT BILL)                                                  â”‚
│11 G/L...P.S.T.                                                                 â”‚
│12 G/L...G.S.T.                                                                 â”‚
│13 DATE CHANGED                                                                 â”‚
│                                                                                â”‚
└────────────────────────────────────────────────────────────────────────────────┘

 

CURRENCY ACCOUNT CODE

 

Enter the code of the currrency you wish to add, modify or delete.

 

To add a new code see ADD A CODE. To modify or delete an existing code see MODIFY AN EXISTING CODE.

 

 

[F2] to display next currency acount code on file.

 

[F4] to exit and return to the A/R maintenance menu.

 

[F5] to display A/R currency codes for selection.

 


ADD A CODE

 

If you enter a code which is not defined the following prompt displays.

 

** NOT ON FILE. DO YOU WANT TO ADD ? (CR=YES/F2=NO):

 

[Enter] to add a new code.

 

The program will step you through each field (see FIELDS below). Once all fields have been entered, the following prompt is displayed:

 

 

** OK TO UPDATE? (CR TO UPDATE; F2 TO MODIFY; F4 TO BYPASS):

 

[Enter] to accept and update.

 

[F2] to modify.

 

See MODIFY AN EXISTING CODE below.

 

 

[F4] to not add the code and return to CODE field.

 

[F2] to not add a new code.

 

You may enter a different NEW code, an existing code or press [F4] to exit.

 

 

 

 

MODIFY AN EXISTING CODE

 

If you enter an existing code you will be prompted whether or not you wish to modify or delete the code.

 

** 'M' TO MODIFY; 'D' TO DELETE; CR TO CONTINUE:

 

[Enter] to clear the display and return to the CODE field.

 

"M" to modify data fields.

 

** FIELD NUMBER (CR TO CONTINUE):

 

Enter the number of the field you wish to modify.

 

Once you have modified the field data (see FIELDS below) press [Enter] to return to this prompt where you may enter the number of additional fields to modify or press [Enter] again to end modifications.

 

 

[Enter] for modifications complete.

 

** OK TO UPDATE? (CR TO UPDATE; F2 TO MODIFY; F4 TO BYPASS):

 

[Enter] to accept changes and update the file.

 

The file is updated and you are returned to the CODE field.

 

 

[F2] to make additional modifications to the fields.

 

You are returned to the FIELD NUMBER prompt above.

 

 

[F4] to cancel all changes and return to CODE field.

 

"D" to delete the code.

 

** OK TO DELETE? (Y/N):

 

"Y" to delete the code.

 

"N" to not delete the code.

 

  Example A/R Currency Code Maintenance display: 

┌────────────────────────────────────────────────────────────────────────────────┐
│Oct19/99                     DEMOS BUILDING CENTRE                              â”‚
│                         A/R CURRENCY CODE MAINTENANCE                          â”‚
│                                                                                â”‚
│                                                                                â”‚
│   CURRENCY CODE                           CN                                   â”‚
│                                                                                â”‚
│01 DESCRIPTION                             CANADIAN FUNDS                       â”‚
│02 EXCHANGE RATE                           1.0000                               â”‚
│03 G/L...EXCHANGE G/L ACCT INCREMENT         0000                               â”‚
│04 G/L...SALES ACCOUNT INCREMENT             0000                               â”‚
│05 G/L...A/R CONTROL                       011200      ACCOUNTS RECEIVABLE      â”‚
│06 G/L...BANK ACCOUNT                                  (SEE TRANSACTION TYPES)  â”‚
│07 G/L...SERVICE CHARGE                    014010      FINANCE CHARGES          â”‚
│08 G/L...DISCOUNTS TAKEN                   014100      SALES DISCOUNTS          â”‚
│09 G/L...DIRECT SALES (DIRECT BILL)        014000      SALES REVENUE            â”‚
│10 G/L...CARTAGE (DIRECT BILL)             014200      CARTAGE/FREIGHT REVENUE  â”‚
│11 G/L...P.S.T.                            012350      P.S.T. PAYABLE           â”‚
│12 G/L...G.S.T.                            012300      G.S.T. PAYABLE           â”‚
│13 DATE CHANGED                          May18/99                               â”‚
│                                                                                â”‚
│                                                                                â”‚
│** FIELD# TO MODIFY; 'D'ELETE; CR TO CONTINUE: __                               â”‚
│                                                                                â”‚
└────────────────────────────────────────────────────────────────────────────────┘

 

FIELDS

 

CURRENCY CODE

 

Enter the code you wish to add, modify or delete.

 

Two alphanumeric characters are used to identify the currency code.

 

 

[F4] to exit the program.

 

[F5] to display list of existing codes for selection.

 

DESCRIPTION

 

Enter a currency description.

 

Enter up to 20 alpha/numeric characters.

 

 

EXCHANGE RATE

 

Enter the appropriate exchange rate.

 

The "base currency code" is that currency in which you maintain your financial records and against which you calculate other foreign currencies. This is usually the currency in which you maintain G/L dollar amounts. In Canada this is CN$, in the US US$, etc. The base currency exchange rate is always 1.0. The program automatically calculates the exchange on foreign currencies based on the rate set in the EXCHANGE RATE field. The exchange rate is normally the "Indication Rate to Purchase" the foreign currency, but can be set to anything you like for other purposes. You can also change the exchange rate as frequently as you please (see PROCEDURE - SETTING EXCHANGE RATE).

 

All transactions updated while the exchange rate is set to a certain value will have that value attached to the individual transaction even if changes are made to the transaction in the future when the rate is set differently.

 

G/L...EXCHANGE G/L ACCT INCREMENT

Enter the exchange G/L account increment.

 

Transactions involving foreign currencies are calculated using two accounts: the principal account and an exchange account. The principal account is treated as if the amount in the account is in the base currency. The amount of the exchange account, based on the exchange rate at the time of the transaction, is combined with the amount of the principal account to arrive at the base currency equivalent of the foreign currency transaction.

 

Thus, all principal G/L accounts involving a foreign currency must have a corresponding G/L account set up for exchange calculation. Normally this account will be the account immediately following the principal account in the G/L.

 

For example:

 

01-1003 Foreign Currency 1 Bank Account

01-1004 Foreign Currency 1 Bank Account Exchange

01-2001 Foreign Currency 1 A/R

01-2002 Foreign Currency 1 A/R Exchange

 

In the above example, the EXCHANGE G/L ACCT INCREMENT would be set to 0001. The increment may be set to anything you please, but it should not span G/L section breaks. For most purposes an increment of 0001 works best.

 

 

Before a currency code involving a foreign currency is created, you must set up all principal and exchange accounts in the G/L.

 

All currency codes using the base currency should have the EXCHANGE G/L ACCT INCREMENT set to 0000

 

G/L...SALES ACCOUNT INCREMENT

 

Enter the G/L sales account increment.

 

[Enter] to bypass.

 

As with the exchange account increment, you may also set up separate accounts to track sales in foreign currencies. The G/L SALES ACCOUNT INCREMENT, however, sets the increment from the base currency dollar sales accounts to the specified foreign accounts.

 

For example: 

 

01-4000 Sales

01-4001 Foreign Currency 1 Sales

01-4002 Foreign Currency 1 Sales Exchange

 

Again, you must include an exchange account in addition to every principal account created.

 


G/L...A/R CONTROL

 

Enter the G/L A/R control account.

 

This is normally the G/L ACCOUNTS RECEIVABLE account, although you may specify any account you wish for a particular currency code. For foreign currencies you may wish to set up a separate G/L A/R account along with a corresponding exchange account.

 

 

G/L...BANK ACCOUNT

 

This is set up in transaction types maintenance.

 

See 25656 TRANSACTION TYPE MAINTENANCE.

 

 

----- G/L ACCOUNTS -----

 

Each of the following fields should specify the specific G/L account to be affected. These accounts must be setup in general ledger previously. Any fields that are not relevant to your business can be bypassed by pressing [Enter].

 

G/L...SERVICE CHARGE

 

FINANCE CHARGES (to your customers).

 

G/L...DISCOUNTS TAKEN

 

SALES DISCOUNTS (by your customers).

 

G/L...DIRECT SALES (DIRECT BILL)

 

SALES REVENUE (from the Direct Billing Program).

 

G/L...CARTAGE (DIRECT BILL)

 

CARTAGE/FREIGHT REVENUE (from the Direct Billing Program).

 

G/L...P.S.T.

 

P.S.T. PAYABLE (on sales).

 

G/L...G.S.T.

 

G.S.T. PAYABLE (on sales).

 

DATE CHANGED

 

Enter the date changes are made to any fields.

 

[Enter] for current system date. 

 


PROCEDURE - SETTING EXCHANGE RATE

 

Retrieve the foreign currency code for which you wish to set the exchange rate, enter "2" to modify the EXCHANGE RATE field. A window will open displaying the most recent rate changes from oldest to newest:

 

EXCHANGE RATE ENTRY DISPLAY

┌────────────────────────────────────────────────────────────────────────────────┐
│Oct19/99                    D E M O   C O M P A N Y                             â”‚
│                         A/R CURRENCY CODE MAINTENANCE                          â”‚
│                                                                                â”‚
│┌──────────────────────────────────────────────────────────────────────────────┐│
││                        ***** EXCHANGE RATE ENTRY *****                       â”‚│
││──────────────────────────────────────────────────────────────────────────────││
││      EFFECTIVE DATE     EXCHANGE RATE                                        â”‚│
││──────────────────────────────────────────────────────────────────────────────││
││        Oct14/99            1.4000                                            â”‚│
││        10191999                                                              â”‚│
││                                                                              â”‚│
││                                                                              â”‚│
││                                                                              â”‚│
││                                                                              â”‚│
││                                                                              â”‚│
││──────────────────────────────────────────────────────────────────────────────││
││ENTER EFFECTIVE DATE (F2=DISPLAY, F4=END, F5=INQUIRY):                        â”‚│
││                                                                              â”‚│
│└──────────────────────────────────────────────────────────────────────────────┘│
│                                                                                â”‚
│** FIELD# TO MODIFY; 'D'ELETE; CR TO CONTINUE: 02                               â”‚
│                                                                                â”‚
└────────────────────────────────────────────────────────────────────────────────┘
ENTER EFFECTIVE DATE (F2=DISPLAY, F4=END, F5=INQUIRY):

 

Enter the date you wish the new rate to take effect.

 

[Enter] for current system date.

 

[F2] to display exchange rate if there is more than one screen.

 

[F5] to display most recent exchange rates.

 

ENTER EXCHANGE RATE

 

Enter the desired rate (up to 4 decimal places permitted).

 

PRESS CR TO UPDATE; F3 TO BACKUP; F4 TO BYPASS: _

 

[Enter] to accept rate as entered.

 

[F3] to change date and rate.

 

[F4] to cancel rate and return to EFFECTIVE DATE field.

 

After accepting the new date and rate you will return to the EFFECTIVE DATE field, where you may enter additional dates and rates or press [F4] to exit back to the currency code maintenance main screen.

 


PROCEDURE - MODIFY OR DELETE AN EXCHANGE RATE

 

At the exchange rate editing window press [F5] to display the most recent rates.

 

Example Exchange Rate Entry and Editing display:

┌────────────────────────────────────────────────────────────────────────────────┐
│Oct19/99                    D E M O   C O M P A N Y                             â”‚
│                         A/R CURRENCY CODE MAINTENANCE                          â”‚
│                                                                                â”‚
│                                                                                â”‚
│┌─────────────────────────────< GENERAL INQUIRY >──────────────────────────────┐│
││Oct19/99                  ***** EXCHANGE RATES *****                  21:10:30││
││──────────────────────────────────────────────────────────────────────────────││
││  CURRENCY       EFFECTIVE DATE     EXCHANGE RATE                             â”‚│
││──────────────────────────────────────────────────────────────────────────────││
││ 1   US            Oct19/99             1.1800                                â”‚│
││ 2   US            Oct19/99             1.5000                                â”‚│
││ **** END OF FILE ****                                                        â”‚│
││                                                                              â”‚│
││                                                                              â”‚│
││                                                                              â”‚│
││                                                                              â”‚│
││                                                                              â”‚│
││──────────────────────────────────────────────────────────────────────────────││
││** SELECT INQUIRY OPTION (F12 FOR OPTIONS); F4 TO EXIT INQUIRY: ___           â”‚│
││                                                                              â”‚│
│└──────────────────────────────────────────────────────────────────────────────┘│
│                                                                                â”‚
│** FIELD NUMBER (CR TO CONTINUE):  2                                            â”‚
│                                                                                â”‚
└────────────────────────────────────────────────────────────────────────────────┘
** SELECT INQUIRY OPTIONS (F12 FOR OPTIONS); F4 TO EXIT INQUIRY:__

 

Enter the line number of the rate you wish to delete or modify.

 

** PRESS CR TO CONTINUE, 'M' TO MODIFY, 'D' TO DELETE: _

 

"M" to modify the rate.

 

"D" to delete the rate.

 

[F2] to display existing rates.

 

[F4] to exit the inquiry.