Currency management - overview
Visma Net offers a variety of functionalities to help organisations manage currency by using the Currency management workspace.
Single-currency or multi-currency mode
Visma Net can function in either single-currency or multi-currency mode:
- In single-currency mode, only the base currency (the currency of the primary economic environment in which the company generates and expends cash) is used for all transactions, and all currency-related controls are hidden. The base currency is specified in the Branches (CS102000) window.
- In multi-currency mode, the Currency management workspace provides the functionality necessary to enter transactions in many currencies and maintains transaction history in both the base currency and the currency of transactions. Activate multi-currency support in the Enable/disable functionalities (CS100000) window.
Multiple currency rates
The Currency management workspace supports an unlimited number of foreign currencies and rate types. You can assign different rate types to suppliers and customers that use the same foreign currency. You can update exchange rates as frequently as you need, and historical currency rates are stored in the database for all previous financial years. For more information, see the following topics:
On-screen currency conversion
Use the selector button to select a currency from the list of available currencies. There are two additional controls, for advanced functionality:
- A Currency toggle button: As you are viewing Supplier ledger or Customer ledger documents or General ledger batches, click the Currency toggle button to switch between the base currency and the foreign currency.
- An Exchange rate button: To view the rate details for a document or transaction, click this icon. The system automatically retrieves the exchange rate that was effective on the transaction date and allows you to view the amounts in the foreign currency or base currency. In data entry windows, you can use the Exchange rate button to override the default currency and rate for the document (if the appropriate option is enabled).
Main functionalities
| Functionality | Description |
|---|---|
| Currency rounding rules | Visma Net records any differences between the exact and the rounded amounts for the base and foreign currencies and accumulates them on appropriate rounding gain or loss accounts. For more information, see: About currency rounding rules. |
| Realised gain and loss calculation rules | Visma Net can automatically calculate the realised gains and losses when payments made in a foreign currency are applied. Exchange rates for individual documents can be overridden if settings in the appropriate workspaces allow this. For more information, see: About currency setup parameters. |
| Supplier ledger and Customer ledger revaluations | You can maintain the operations with selected suppliers and customers in foreign currencies. At the end of each financial period, you have to revalue all open Supplier ledger and Customer ledger documents in the base currency. The revaluation gains and losses are calculated automatically, and the appropriate adjusting and reversing batches are generated. For more details, see: About supplier and customer revaluations. |
| Translations | If your company reports its financials in a currency other than the base currency, use the Currency management workspace to configure translation to accurately reflect your business operations in another currency. For more information, see: Overview of translations. |
| General ledger revaluations | You can maintain the selected General ledger accounts in foreign currencies. At the end of each financial period, you have to revalue in the base currency the balances of General ledger accounts which are denominated to foreign currencies. The revaluation gains and losses are calculated automatically with the appropriate adjustments posted to revaluation gain and loss accounts specified for each foreign currency. For more details, see: About general ledger revaluations. |
Other functionalities and options
The Currency management workspace also offers the following functionalities:
- Ability to maintain exchange rates as frequently as needed
- Capability to post transactions in different currencies to the same account
- Application of payments in currency that may differ from the currency of open documents
- Assignment of default rates to particular suppliers and customers to reduce the input error rate
- Automatic calculation of realised gains and losses for documents being paid
- Flexible translations to any of the defined currencies
- Warnings if the predefined rate variance range is exceeded