These cookies are required for the website to function properly. They ensure security, enable basic features like page navigation, and store user session data. You cannot disable these cookies.
- Multi-currency Accounting
- Who it's for
- Exporters and importers
Exporters and importers
A distributor buying from Asian suppliers and selling to European customers, a manufacturer exporting most of what it makes, a commodity trader. Each is one legal entity with one functional currency and most of its receivables, payables and cash in something else. This customer has no group to consolidate and every reason to know its exposure.
How Multi-currency Accounting is set up for you
Documents in the counterparty's currency
Invoices in the customer’s currency, bills in the supplier’s, each booked at its own day’s rate and kept in transaction currency for the counterparty’s statement.
Currency bank accounts
A euro account for European receipts, a dollar account for supplier payments, each reconciled in its own currency, with the Cash Position showing every account in its currency and in functional currency at today’s rate.
Realised difference on every settlement
Each application separates the document amount from the cash amount and releases the corresponding carrying value. Prior revaluation is accounted for before the remaining settlement difference is posted, with each amount traceable to its source.
Exposure as a report
The Foreign Currency Exposure report nets open invoices, bills and bank balances per currency, at booked value and at today’s rate, which is what the treasury analyst hedges outside the system.
Revaluation at month end
Open monetary balances and currency accounts are revalued at the approved closing rate. The chosen reversing or Delta method retains item-level allocations so later partial settlements do not recognise the same exchange movement twice.
Consolidation switched off
One entity, no eliminations, no translation; the intercompany module is idle until a second entity appears.
Features to start with
Currencies and rates
Keep the source, purpose and approval behind every exchange rate, from document posting to group reporting.
Receivables
Keep customer balances, cash received and exchange differences clear across invoicing, collection and settlement.
Payables
Review supplier bills and payment authority, then reconcile cash, withholding and exchange differences without losing the original evidence.
Roles on the team
- Controller
- Owns the trial balance, the close and the consolidated statements. Approves what the GL Accountant, the Treasury Analyst and the clerks prepare: manual journals, revaluations, reconciliations, bills and credit memos above the clerk limit, pay runs above the clerk limit, and the period close itself.
- GL Accountant
- Prepares manual journals, accruals and prepayments, bank reconciliations and the entity close tasks the Controller approves.
- Treasury Analyst
- Owns currencies, exchange rates, bank accounts, transfers between currency accounts and the month-end revaluation. Prepares what the Controller approves.
- AP Clerk
- Processes vendor bills in the vendor’s currency, checks them against the order and receipt references, and builds pay runs.
- AR Clerk
- Raises customer invoices and credit memos in the customer’s currency, applies cash at the receipt rate and runs dunning.
- Auditor
- External or internal auditor. Read-only across the platform with access to the closing binder, revaluation workings and the audit trail.
Set up Multi-currency Accounting your way.
Start free, then use Proto to change fields, steps and approvals before your team goes live.