- Base currency
- Currencies & the exchange rate
- Account currency
- Case currency
- Currency and expenses
- Review and set the system’s base currency before adding new currencies because it can’t be changed afterwards.
- If the Multi-currency upgrade is not activated (and never was previously activated) all fees, invoices and financial reporting data will be shown in the base currency.
- Once the Multi-currency upgrade has been activated, the user can make numerous currencies available in the system. The base currency can’t be changed once an additional currency is added to the system. When a new currency is added, the exchange rate must be set and this information should be updated as necessary. Every time a new account is created a currency can be selected to be associated with that account, or the default base currency will be assigned. All new cases for an account will automatically assume the account currency unless specifically changed when creating the case.
- If the Multi-currency upgrade was activated and then deactivated, old cases will remain in the currency specified when the case was created, and new cases will assume the company’s base currency by default.
Users normally select the base currency when configuring their system. It’s advantageous to review the base currency before upgrading to Multi-currency because the base currency can’t be changed once another currency has been added. If the base currency is changed, all existing fees, invoices and financial reporting data will not be recalculated but will only show a change in the currency symbol. Once an additional currency has been added to the system the base currency can no longer be changed.
The Multi-currency function allows the user to select from over 160 currencies to be added to the system, and then associated with accounts. In order to add a currency the user must set the new currency’s exchange rate against the company’s base currency. The new currency can then be assigned as the default on new accounts, and will thereafter automatically be applied to invoicing for all cases related to that account.
Your company’s base currency is used to represent all financial data unless the Multi-currency upgrade has been activated and a new currency successfully associated with an account.
Users can review the company’s base currency by clicking on Settings in the top menu and clicking on Organization Info. Locate Currency on the left, and notice the base currency is listed after it.
If the currency name and its drop-down menu are grayed out, the base currency can’t be changed.
It’s important that the base currency is carefully selected prior to adding additional currencies because once a new currency has been added to the system your company’s base currency can no longer be changed.
If desired, change the base currency by clicking on the drop-down menu and selecting another currency.
When additional currencies are added to the system, and associated with a case, the base currency will still be used to represent certain financial data, such as forecasting, revenue and profit margins. Other data such as fixed fees and price lists will be mixed so that base currency is used for internal accounting and the case currency is used for invoicing the customer.
Currencies & the exchange rate
To add currencies click on Settings in the top menu, and then click on Currencies in the Organization section. On the left, under Name, click to open the drop-down menu and click to select one of over 160 currencies.
Next, you need to set the exchange rate.
Enter the exchange rate as a ratio equal to 1 unit of the base currency. For example, EUR 1,23340 = EUR 1, so you would enter 1,2334 as the rate of Dollar to the Euro. Click Add to enter the currency and its rate in the system.
When creating a new account, the user can select any currency in the system to be associated with it. This will be the account’s default currency, and it will automatically be assigned to all new cases for that account.
Go to New in the top menu and select Account from the drop-down. On the New account page, in the General information section, click on + Details and select an available currency from the drop-down list after Currency. Click Save at the bottom of the page when you are finished entering account information.
The account currency can be changed after the account has been created, but cases created previously in relation to that account will not be reconfigured.
From Contacts in the top menu, click to select Account list and then locate and click on the account you wish to change. On the account page, click Edit in the right corner of the Account information section. In the right column, toward the bottom, use the drop-down menu after Currency to select a different account currency. Click Save to enact the change.
A new case will automatically be assigned the same currency as the account under which it’s created, unless you specify otherwise.
Under New in the top menu, click to select Case from the drop-down menu. When the new case is for an existing account, the case will automatically assume the account currency. When the new case is created using an existing case as a template, the new case will automatically assume the currency of the existing case. When the new case is for a new account, the case will automatically assume the company’s base currency. However, in all of these situations a different currency can be selected from the Currency drop-down menu.
It’s important to select the correct currency when creating the new case because it can’t be changed later.
Currency and expenses
Certain expenses related to a case, such as price lists and products, are intended to display in the case currency because these numbers are usually agreed upon with the customer.
In effect, when creating a new case in a currency other than the base currency, it’s necessary to create a price list in that currency. Once created, the price list will be readily available for use with all new cases created in that currency. Keep in mind that price lists and exchange rates may need to adjusting to correct for fluctuations in the currency market.
Although price lists are shown in the case currency, they’re recorded for use by the payroll department in base currency according to the exchange rate at the time of invoicing. Product prices and mileage are handled in a similar manner. To create a price list in any currency, go to Settings and select Price lists in the Organization section. Type to enter a name for the new price list in the text field under Name, click to open the drop-down menu under Currency and click to select a currency. Then click the Add button.
Travel items, such as per diem and other expenses, are shown in the base currency because these figures are usually fixed for reimbursement to the employee. These fees are then converted to the case currency, according to the exchange rate at the time of invoicing, for inclusion on the customer’s invoice.
Fixed fees for a case are presented in mixed currencies. The cost is presented in the base currency for your company’s accounting purposes while the price is shown in the case currency for inclusion on the customer’s invoice.
For example, if you open a case that has a currency other than your base currency, and you click to Add fixed fees in the Pricing & Purchases section of Sales & Financials, the Unit price is shown in the case currency while the Unit cost is in the base currency.
When work hours, products, fixed fees and other expenses are invoiced they’re locked to the exchange rate at the time of invoicing. If the price list or exchange rate is changed after invoicing, the figures that have already been invoiced are set and won’t be recalculated.
Further, an account can be invoiced with more than one case at a time if all cases on the invoice are in the same currency. Cases with different currencies cannot be billed on the same invoice.
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