Introduction

Q360 supports multi-currency and foreign exchange (also referenced as “FX” or “FE”) in the system, and across a multi-company setup, if applicable.

Business Challenge

As a Q360 user, you may do business transactions (invoice a sale, make a purchase) in a currency different from your company(ies)’s default currency.

Given that foreign exchange rates vary at any point in time, the foreign exchange rate rules used by the system to display and/or record accounting transactions has an impact on how you perceive and recognize profitability.

Key Takeaways

• Perform the required setup for each currency you do business in
• Follow the recommended practice suggested to manage the foreign exchange in the system
• Be aware of the foreign exchange impact on specific Q360 transactions
• Observe how defined hypothetical FX report rates impact your cash flow forecast and revenue forecast projections

Recommended Practice

• Set up at least one dedicated bank account / GL account per currency type
• Seek your financial expert’s advice when setting foreign exchange (FX) rates and how often to change them
• Recognize by posting periodically the gain/loss on FX for each currency type
• Refer to One Dashboard, with drill-in to the underlying Live Data Reports: Cash Flow Forecasting and Revenue Forecasting (which make use of the FX defined “report rate”)
• Refer to Live Data Report “FX Gains/Loss Calculations” when determining gain/loss on foreign exchange amounts
• Note: some Quick Views and Live Data Reports, such as Aged Accounts Receivable, will display an asterisk next to totals that include multiple currencies

In Q360

10:32

Setup multi-currency and FX

1. Setup
   1. Configure configdata:
      • FOREIGNEXCHANGE : values OFF or ON
        • If ON (recommended for automating FE entries):
          • System writes “FE” journal entries using Currency Admin rate and rules
          • Option to further define configdata FXARTRANS (FX Receipt Translation):
            • FXARTRANS: value OFF or ON
              • • If ON (recommended), on Accounts Receivable cash receipts, system writes foreign exchange “FE” amount journal entries at rate of cash receipt date; if OFF system uses same rate as used when posting the invoice, i.e. “iinvoice date”)

               

               

   2. Currency Administration: define one record for every currency you have business transactions in.
      1. Rates: set in 3 places:
         • Rates by date range & CompanyNo
         • Posting rate: a “fall back”, default rate, if no matching date range applicable
         • Report rate: referenced and used for analytics/reports only
      2.  Symbol: define according to your preference
         • e.g. $,£, €, US$, CAD$, AU$
         • This symbol visually appears in grids, report printouts, form fields
      3.  GL accounts: enter the appropriate GL account for each of the following:
         • AR/AP subledgers
           • • AR Exchange Account
             • AP Exchange Account

            

         • Bank
           • • Default Bank Account
             • FX Translation Account (foreign exchange for bank)

            

   3. Company Setup: define the default currency (configdata “DEFCURRENCY”) for every CompanyNo instance.
   4. Setup for bank GL account(s): Enter the “currency type” applicable for each bank account.
2. Foreign exchange impact on transactions
   • Sales Quote (non-posting): observe FX in profit summary of header
   • Sales Order (non-posting): observe FX in profit summary of header
   • Invoice
     • Post invoice

   • Purchase Order
     • Receive equipment Q/A type

   •  Voucher
     • Post voucher
     • Post pre-paid expense

   • Project
     • Profit tab (non- posting) – observe FX
     • Post revenue recognition

   • Service Contract Invoice
     • Post invoice (to deferred revenue)
     • Post service revenue

   • FX gain/loss on foreign exchange
     • Periodically post via a manual journal entry
     • Tip: refer to core report: Live Data Report “FX Gains/Loss Calculations”
       • displays Bank | AR | AP foreign exchange translation amounts

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3:30

Multi-currency FX impact on Service Contract Invoice

Multi-currency FX impact on Service Contract Invoice (post invoice, post service revenue)

7:52

Multi-currency FX impact on Quote, Order, Invoice

Multi-currency and foreign exchange ("FX") impact on Quote/Order (non-postings); and Invoice (posting)

4:08

Multi-currency FX impact on Project

Multi-currency FX impact on Project > Profit tab

5:23

Multi-currency FX impact on PO, Voucher

Multi-currency FX impact on Purchase Order (receipt of Q/A type items), Voucher (posting)