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- Multi-currency Accounting
- Who it's for
- Global services and software firms
Global services and software firms
A software or services company grows by opening an entity where its customers and staff are: a US parent, a UK entity, an Indian delivery centre, a Singapore sales office. Customers are billed in their own currency from whichever entity holds the contract, staff costs land in local currency, and every month the delivery entity recharges the selling entity for the work.
How Multi-currency Accounting is set up for you
High-volume invoicing from the billing system
Connect the billing system to import invoices with source identifiers, customer currency and the applicable rate. Test duplicate detection and exceptions; the AR Clerk reviews unresolved documents and cash.
Cash application at scale
Receipts from card processors and bank feeds are matched on reference, one application line per invoice; separate bank fees from customer shortfalls in the Cash Application Queue. Book supported fees to the agreed expense account and route customer credit adjustments through the required approval; do not write off the difference automatically.
Recharges as intercompany
The delivery centre’s monthly charge to the selling entity is one intercompany record at the agreed transfer price in the agreed currency, posted in the receiving entity when it confirms and eliminated at group.
Withholding tax on cross-border invoices
The customer carries a withholding code and the application retains the withheld amount and supporting evidence in an explicit currency, separately from the cash received. Verify eligibility and the posting treatment for the relevant jurisdiction.
Budgets by entity, variance for the group
Each entity plans in its own currency; the group view translates at the budget rate so a weak rupee does not read as an overspend in Bangalore.
Close on one calendar
Map entity periods to the board-reporting calendar. Reconcile banks before revaluation, clear close exceptions and review the consolidation inputs. Lock the group result only after required entity closes and independent review are complete.
Features to start with
General ledger
Keep transaction amounts, functional values and approval evidence together across journals, close adjustments and group reporting.
Currencies and rates
Keep the source, purpose and approval behind every exchange rate, from document posting to group reporting.
Revaluation
Restate foreign-currency balances with clear sign conventions, item-level carrying values and independent approval.
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.
- FP&A Analyst
- Loads and maintains budget versions in entity currency, runs allocations and reads variance in reporting currency.
- Tax Specialist
- Owns tax codes, jurisdictions, filings and the tax accrual.
Set up Multi-currency Accounting your way.
Start free, then use Proto to change fields, steps and approvals before your team goes live.