Coins ERP+ provides the facility to operate with multiple currencies, for transaction processing and reporting. Multi-currency usage requires configuring the system to use these different currencies, and gives further options to use this in reports.
The key elements of Multi-Currency are :
A "Base" currency, which can be different for each Coins ERP+ company, and which by default that company operates in.
Exchange rates maintained by the user.
The ability to specify different currencies on different accounts (suppliers, customers, contracts, bank accounts etc.), and have different currency values calculated as transactions are input or processed, generally known as "Foreign Currency".
The conversion of any foreign currency values at point of input into "Base" currency, which allows standardised reporting throughout the system.
Calculation of potential exchange differences, as a provision, when currency rates change and transactions are still held in the system (unrealised variance).
Specific processing of currency aspects such as actual exchange variances at point of payment, and the costing of these.
The ability to produce financial reports in a range of different currencies, generally known as "Alternative Base Currency".
Standard reports throughout the system able to be run in a range of currencies. For example supplier reports can be run in the account currency or all suppliers can be reported in the base currency, or one of the alternative base currencies.
Detailed provision for aspects of foreign currency contracting, such as client billing in a different currency to the contract cost/revenue reporting currency; multiple clients on the same contract, each working in a different currency, etc.
Production of consolidated Balance Sheets and other financial reports across companies, which merge different companies working in different base currencies.
Basic Principles - How Multi-Currency Works
Coins ERP+ operates as a multi-currency system; Coins ERP+plus can operate as a single-currency system or a multi-currency system; configuration defines which is in use. If single currency is in use, currency prompts on screens are greyed out. Single currency companies can be turned into multi-currency companies, but the reverse cannot be performed.
Each Coins ERP+ company has a "Base Currency" defined. A common approach is to have different base currencies in different companies, for example companies 1, 2 and 3 in GBP, company 4 in EUR, company 5 in USD, and so on. There does not necessarily need to be any sequence to this. It is common for one currency to reflect the majority of the items and Coins ERP+ companies, with other companies configured to have Base in their own "Local Currency".
In the Coins ERP+ database many key values (for example net, GST, discount, gross, etc) are actually held six times. In a single currency system just field 1 is used. In a multi currency system all six are used. Each of these six entries actually holds the value, and the exchange rate used. The six fields are:
1 - Document currency (for example invoice; the original transaction value)
2 - Base currency for the company
3 - Alternative base currency 1
4 - Alternative base currency 2
5 - Alternative base currency 3
6 - Account currency (for example supplier account on PL, contract currency on JC, etc).
The document currency is that of the transaction; for example, the invoice. An invoice in say USD may be processed through a company operating overall in base of say GBP. If foreign currency is not involved this will be the same value as the base currency.
The account currency is that of the account for that transaction; for example, supplier account currency for an invoice or contract currency for a costing transaction. In very many cases these values will be the same as the document currency, and therefore the same as base. In practice, users are advised not to use the facility to have invoices of more than one currency on the same supplier account, etc, but to keep different accounts for this purpose. This is not that Coins ERP+ cannot handle this combination, but simply to guard against errors by input staff that could arise if this is allowed.
Alternative base currencies are used for reporting in currencies other than the base currency; see Alternative Base Currency.
The currency values are calculated by Coins ERP+ when the records are written to the system. If any of the Alternative Base currencies are not in use then the relevant fields will always be zero.
It is important in certain advanced areas of Coins ERP+ to know how these six values are used. For example in Report Designer, users are offered a selection of fields and the currency items are shown as six entries; the user has to select the required one. If you do not require any multi-currency facility, and only want to report in Base currency, choose value 2. Regular end users, however, will not be presented with this at any point.
Example of Report Designer field selection
The six lower entries are the six values for contract costs by cost period.
In the case of General Ledger balances a different approach is employed because the value fields are already held 12 times or more, one value for each period, and therefore three additional currency balance fields are held on this data, also with 12 or more values, to hold the alternative base values for each period.
In the case of General Ledger transactions, GL accounts are always in the base currency of the company, and therefore it would be redundant to hold both Base and Account values, as they would always be the same. Therefore GL transactions have only five currency values held, not six. The one omitted is the last one, account currency. The same approach applies to GST transactions.
Some standard Coins ERP+ reports provide options for which currency they will report in, while others do not. Where there is no provision for foreign currency, the entries are always in the base currency of the company.