Multi-base currency considerations

Some multi-entity companies can benefit from more than one base currency. If your company has entities that operate in different currencies, you would enable multiple base currencies. Selecting this option in Multi-Entity Management enables each entity in your company to operate in a different base currency. For example, if your company needs to operate one entity in AUD and another entity in CAD, then you would need to enable multiple base currencies in your company.

Use Consolidation or Advanced Ownership Consolidation to consolidate the financial data and run financial reports in a single currency.

When using multiple base currencies in your multi-entity company, some applications and features require special consideration.

The base currency defaults to the entity level.

Applications and features

Advances can only be used at the entity level.

The following can be done at the entity level only:

  • Quick AR sales invoice entry
  • Recurring AR sales invoices
  • Deposits (same as Cash Management)
  • Deposits, manual
  • Penalties

The following can only be done at the entity level:

  • Deposits
  • Other receipts
  • Credit card transactions
  • Charge payoffs
  • Bank interest and charges
  • Credit card charges and fees

You can only access the credit card register and credit card transactions from within the entity. You can view credit card transactions in Cash Management > Credit card transactions.

It's possible to create credit cards at the top level, but they will not be fully functional credit cards.

Before enabling multi-base currency for your company: If you have existing credit cards at the top level, pay any existing transactions, reconcile, and deactivate the card. You can recreate any outstanding transactions at the appropriate entity level. Further, you cannot process credit card transactions at the top level nor use a top level credit card at the entity level.

  • Create credit cards at the entity level.
  • Reconcile credit cards at the entity level.
  • Credit cards must be in the same currency as the base currency of the assigned location.
  • The base currency is for imported transactions and import history.
  • Bank reconciliations take place in the currency of the bank account.
  • Suppose you import your transaction history in the bank currency. Say that the bank currency differs from the base currency. The transactions that you import will not appear in the bank reconciliation. To prevent missing transactions, create a journal entry that moves the transactions out of the bank currency and into the base currency.

An example is shown here: 

Account Location Txn currency Exchange rate Transaction debit Transaction credit Base debit Base credit
1009--CAD Acct E100 AUD 1 0 103,187.92 blank 103,187.92
1009--CAD Acct E100 CAD .77229225 133,612.53 0 103,187.92 blank
  • When using undeposited funds, the currency is assumed based on the bank account you are depositing to.
  • You can only use undeposited funds with a bank account that operates in the same currency as the base currency.

You can only transfer funds between bank accounts set up for foreign currency if both accounts use the entity base currency.

Note the following for all accounts:

  • Create accounts at the top level.
  • Restrict accounts to the relevant entities as needed.
  • Reconcile accounts at the top level.

If a bank account where transactions have already taken place has no currency assigned to it, the transactions at that bank account will not appear. An error will happen when setting the currency.

You can create contracts at the top level or the entity level.

If you create contracts at the top level:

  • Do your revenue recognition at the top level.
  • Generate sales invoices at the top level or in the relevant entity.

If you create contracts at the entity level, then you must do the following:

  • Do your revenue recognition at the entity level.
  • Generate sales invoices at the top level or in the relevant entity.

Note the following after you enable multiple base currencies:

  • You can only build Inventory kits at the entity level.
  • Inventory valuation reports lose totals at top and entity levels.

The following can only happen at the entity level: 

  • AR sales invoice generation
  • Credit card transactions
  • Manually posted cheques (handwritten cheques are posted as manual payments)
  • Recurring transactions
  • Revenue recognition
  • Sales orders for billing
  • Create the following transactions only at the entity level:
    • Recurring transactions
    • Credit card transactions
  • You can transfer funds between cash accounts in different currencies, but you must specify the currency information.
  • Credit cards can only be used to pay AP purchase invoices in the same currency.
  • Suppose you pay a AP purchase invoice using a bank account in a currency different from the AP purchase invoice transaction currency. Specify the amount the bank paid in the transaction currency of the AP purchase invoice.
  • There are several limits on reclassifying AP purchase invoices in a multi-base currency environment. If the reclassify option is not available, reverse the AP purchase invoice and payment, or create journal entries to correct the error.

You can filter by transaction currency on the following pages:

  • Print or email OE AR sales invoices
  • Subledger reports
  • Aging reports

You can use the following revaluation reports for a multi-entity company with multiple base currencies:

  • General Ledger
  • Cash Management
  • AP Open Items
  • AR Open Items
  • OE Deferred revenue