This topic introduces the concepts related to multi-entity currency support in Q360.

Note: The decisions you make from this document are reflected in Core Setup workbook.

Entities

An entity is a legal registered trading company used for reporting financial activities. Q360 supports working with multiple entities in a single database environment, with each entity identified by a name and a unique two-digit code. All entities share a common chart of accounts, and all transactions for each entity are tagged to their respective entity number.

The following information explains how Q360 supports multiple entities:

• Employees/users are assigned to a default entity and branch but can transact in other entities and branches given appropriate permissions to do so.
• Customers and vendors are assigned to a default entity, but you can conduct business with them from a different entity given sufficient permissions to do so.
• If you are defining multiple entities, each entity needs to have an inter-company GL account which can be either an asset or liability[1]. This account is used for postings that affect two entities, such as posting the cost of shared labor.
• Each entity can have its own branches, default currency, fiscal calendar, accounting setup rules, budgets, income statement and balance sheet formats, and financial reports.
• While the department list is shared between entities, each entity can decide which GL segments, resulting from branch and department combinations, are applicable to the segment.
• General Q360 configurations such as report structures, workflow designs and general codes are shared between entities.

Currencies

Q360 supports multiple currencies. A currency can be defined as default currency for an entity or a company (customer/vendor).

Each currency can be defined with time-bound posting rates. Your default currency’s posting rate will be 1.0, and additional currencies will be posted using an applicable pre-configured rate which is updated on regular basis such as quarterly or annually.

Each currency can be configured with 3 sets of GL accounts:

• AR Exchange Account: Q360 uses this account for foreign exchange (FX) transactions for accounts receivable
• AP Exchange Account: Q360 uses this account for FX transactions for accounts payable
• FX Translation Account: Used for recording gains and losses resulting from FX
• Default Bank Account: Used in the absence of a bank account number on AR or AP customers

[1] Although this is flexible, the decision to use an asset or liability account may be driven by the type of transactions that you expect to post to this account for each company.