Multicurrency

Multicurrency

1. Purpose

Multicurrency module allows to finance leasing agreements in foreign currency. The module effects contract, A/P, A/R ledgers.

2. Module Setup

The following elements are combined to allow contract multicurrency transactions.

2.1. Financing Currencies (navigate to Search window and type “Financing Currencies”) lists currencies available for asset finance.

2.2. Separate Financial Products are used for each financing currency.

Currency Code determines the financing currency.
Currency Exchange Rate Type determines how the system selects currency exchange rate when posting transactions related to contracts in currency. When Currency Exchange Rate is used the program uses the posting date on the invoice or journal line and the available rates in the Currency Exchange Rate table to find the relevant exchange rate. If a Fixed Contract Currency option is used the program uses the exchange rate that is fixed to the lease agreement.
The amounts that are fixed for each financial product (Min Amount Financed, Direct Debit Fee, etc.) are provided in the financing currency of the product.

2.3. Dedicated Programs are used for each financing currency.

Currency Code determines the financing currency.
The amounts that are fixed for each program (min/max NAF, Application Fees) are provided in the financing currency of the program.

3. Financing in a foreign currency

To finance an asset in a foreign currency the following parameters of a contract must match:

• Contract Currency
• Currency of a Financial Product
• Currency of a Program

All amounts shown in application card and contract card are in a contract currency.
Contract currency exchange rate is selected according to the activation date. It is allowed to adjust the rate at the compliance stage. Contract currency exchange rate has no effect when financial product with Currency Exchange Rate Type = Currency Exchange Rate is used for the financing.

4. Balances in foreign currency

Foreign currency-related accounts can be found in Chart of Accounts. These accounts can be different for different currencies and can be set up on the Currency Card.

Contract currency amounts can also be seen in ledger entries, for example, GL Summary provides information in LCY and CCY amounts.