Step 2. Creating and Setting up Currencies

Overview and Settings

Here you will learn how to create currencies in the system. If you are not selling or buying internationally, the default currency of USD has been added for you and no changes will be necessary.
You can add a currency from the Currencies classifier or manually.
To set up currencies, go to Master data and settings > Enterprise > Currencies and do the following:
  • To use multiple currencies, select the Multiple currencies checkbox.
  • To import exchange rates from the European Central Bank, select the Import European Central Bank exchange rates checkbox.
  • Specify the Default base currency. When recalculating document amounts to the accounting currency, rates are set relative to the company local accounting currency. In other cases, (for example, when recalculating prices from one currency to another currency), rates are set relative to the default base currency.
  • Specify the Management accounting currency. Management accounting currency is a currency for estimating enterprise activity in management accounting (in the application, all the revenue irrespectively of the sale currency is converted into management accounting currency). In simple words, this currency allows building management reports intended for internal use and not regulated by law. The main goal of management reporting is to provide the company's management with up–to-date information about its activities so that they can evaluate the business results, monitor processes, and make managerial decisions.

Creating Currencies

Adding Currencies From Currencies Classifier

The Currencies classifier contains a predefined list of national currencies used across the world.
To add a currency from the Currencies classifier:
  1. Go to Master data and settings > Enterprise > Currencies.
  2. Click Currencies.
  3. Click From classifier...
  4. In the list, choose the required currency.
  5. Click Select.
The selected currency immediately appears in the currencies list.

Adding Currencies Manually

Manual creation of currencies is recommended if a currency is not included in the Currencies classifier. For instance, you might want to add a custom currency required for your company’s internal business needs.
To create a currency:
  1. Go to Master data and settings > Enterprise > Currencies.
  2. Click Currencies.
  3. Click Create.
  4. Add the Currency name, Numeric code, and Alphabetic code.
  • Numeric code is a three-digit ID established by the International Organization for Standardization (ISO).
  • Alphabetic code is also established by ISO.
5. Make sure a Currency rate source is correctly specified according to your business needs:
  • Input manually indicates that you can specify the currency exchange rate only manually.
  • Calculate by multiplying indicates that the currency exchange rate is calculated by the formula. If you select this method, specify another currency. Then, in the Increase by field, enter the percent.
  • Calculate by formula indicates that the currency exchange rate is calculated by the specified formula. Select this method if the currency exchange rate depends on the exchange rates of several currencies. Then specify these currencies in the formula. For example, (USD+EUR)/2*1,02.
6. Click Save and close.

Exchange Rates

If your company uses multiple currencies to conduct its business, it will be a good idea to specify exchange rates.

Creating Exchange Rates Manually

To create exchange rates manually:
  1. Go to Master data and settings > Enterprise > Currencies and click Currencies.
  2. Open the required currency and click Currency exchange rates at the top.
  3. Choose a Base currency for which you create the exchange rate.
  4. Click Create.
  5. Specify the exchange rate date in the Effective on field.
  6. Specify the exchange rates.
  7. Click Save and close.

Importing Exchange Rates

From European Central Bank

Note: this option is only available if the Import European Central Bank exchange rates checkbox is selected in Master data and settings > Enterprise > Currencies.
To import exchange rates from the European Central Bank:
  1. Go to Master data and settings > Enterprise > Currencies and click Currencies.
  2. Open the required currency and click Currency exchange rates at the top.
  3. Click Import > European Central Bank exchange rates.
  4. Specify the date range in the From: and To: fields and select the currencies you want to import rates for.
  5. Click Import and close.

From Spreadsheets

To import exchange rates from a spreadsheet:
  1. Go to Master data and settings > Enterprise > Currencies and click Currencies.
  2. Open the required currency and click Currency exchange rates at the top.
  3. Click Import > Exchange rates from the table.
  4. Copy the information from an external file to the table. All fields are required.
  5. Click Import.