Introduction
Multi-Currency Accounting is a powerful feature in Empress that allows businesses to handle transactions in multiple currencies with ease. This feature is essential for businesses that have foreign bank accounts or transact with international customers or suppliers.
Setting Up Empress Multi-Currency Accounting
Follow the steps below to start using the Multi-Currency Accounting feature:
1. Designate the Currency in the Chart of Accounts
To start, assign an accounting currency to the Account record. This is done by defining the currency from the Chart of Accounts when creating an Account.
2. Generate a New Account with a Different Currency
You can also allocate or alter the currency by accessing specific Account records for existing accounts.
3. Designate Currency for Customers or Suppliers
For customers or suppliers, also known as the Party, you can define the billing currency in their record. If their accounting currency differs from your company’s currency, be sure to specify the Default Receivable or Payable Account in their currency.
4. Actions After Setup
After defining the currency in the necessary accounts and selecting the relevant accounts in the Party record, you can start making transactions.
Note that if the party account currency differs from your company’s currency, the system will forbid transactions with that party unless you switch the transaction’s currency to match the party’s. If the party account currency is the same as your company’s currency, you can conduct transactions in any currency. However, accounting entries will always be in the Party Account Currency.
Remember to set the right account with the necessary currency in the ‘Debit To’ field when making invoices or payments.
Note: You can amend the accounting currency in Party/Account records before making transactions. Once transactions have been made, the system will not allow currency changes for both Party/Account records.
Managing Exchange Rates
When dealing with multiple currencies, Empress provides a Currency Exchange feature for managing exchange rates. Here, you can store the exchange rate quotations you need.
For foreign currency transactions, Empress checks exchange rates from the Currency Exchange record or retrieves current market exchange rates from exchangerate.host. If both methods fail, the exchange rate will have to be entered manually.
Completing Transactions in Multi-Currency Accounting
Sales Invoice
In a Sales Invoice, the transaction currency must correspond with the Customer’s accounting currency if it’s different from your company’s currency. If not, you can choose any currency in a Sales Invoice.
Purchase Invoice
In a Purchase Invoice, accounting entries will be based on the Supplier’s accounting currency.
Journal Entry
In Journal Entries, you can conduct transactions in various currencies. Enable the ‘Multi Currency’ checkbox to make multi-currency entries. Only when the ‘Multi Currency’ option is activated can you select accounts with different currencies.
Reports
General Ledger
In the General Ledger, debit/credit amounts are presented in the party’s currency, if an Account’s currency differs from your Company’s Currency.
Accounts Receivable/Payable
In the Accounts Receivable/Payable report, all amounts are displayed in Party/Account Currency.
In conclusion, Empress’s Multi-Currency Accounting feature is a vital tool for businesses conducting cross-border transactions. It simplifies the process of dealing with multiple currencies and exchange rates, making international business operations smoother and more efficient. For further assistance or resources, consider reaching out to our support team or reviewing additional user-friendly guides.