Sage 200 foreign currency processing

Although foreign currency processing is not used by everyone for those that do it can be confusing sometimes as to where the various settings for the processing of foreign currency transactions are held in Sage 200.

 

These can be summarised :

Accounting system manager – Settings – Currencies and Exchange rates

The base currency is what the nominal ledger uses.

Rate types:

 

Single – one amendable rate is associated with the currency

Period – a list of rates can be assigned to the currency, each with an expiry date

Single and Period – when a sales or purchase ledger account is linked to a currency using this option you can choose whether to use the single or period rate for the account :


Amendability:

 

Not amendable – on entering a transaction the exchange rate cannot be changed manually. The value always comes from the exchange rates table.

 

Amendable cash postings only – the rate can only be changed when entering payment or receipt postings through the relevant ledger in the cash book module.

 

Amendable – all – the rate can be changed when entering any transaction type.

Fixed to Euro – the rate to Euro is specified on the exchange rates tab. The currency will fluctuate whenever the Euro changes.

Exchange rates :

Single rate types - for non Euro currencies enter the exchange rate in the 1£ equals column.

If the currency is fixed to the Euro enter the Euro exchange rate in the 1 Euro equals column.

For the Euro enter the exchange rate in the 1 Euro equals column for your base currency. A Euro to base calculation is always used e.g. 1 Euro = £0.610865

Period rate types – set up rates and expiry dates in the Period to Exchange rates to £ column for non Euro currencies.

Set the rate and expiry date in the Period Exchange rate to Euro column for the Euro or for currencies fixed to the Euro.

Sales/Purchase Ledger – Utilities-Ledger set-up-ledger settings


If this option is selected then the exchange rate on the invoice is compared with that on the receipt when they are allocated. If they are different then the exchange gain/loss is automatically calculated and posted to the default exchange differences  account (see below, or the account specified in the Nom A/C No column for the currency) and the debtors/creditors control account.


Nominal ledger  - ledger set up – default nominal accounts 

The exchange difference can be seen in the sales/purchase ledger transaction enquiry drill down :


Sales/Purchase ledger – period end routines – Foreign account revaluation

This produces a report with the option to make nominal postings in respect of the potential gain/loss on outstanding sales and purchase ledger transactions.

Cash book – Period end routines – Foreign bank revaluation

Current accounting rules require that the balance of your foreign currency bank accounts are shown on the Balance Sheet at a fixed, stated exchange rate. This option allows you to revalue the balance of your account using a new exchange rate – any currency gain/loss is posted to the exchange differences account and the nominal account specified for the bank account.

Accounting system manager – Settings – System settings – Invoices and credit notes

If this is ticked as above then the exchange rate in force when the invoice or credit note is printed is used (when posted to the ledger), if it is not selected then the exchange rate in force when the sales order or return was entered is used.

 

The second box above gives the ability to edit the exchange rate at the point of printing the invoice/credit note (providing the currency is set to be Amendable).