Basic Currency Configuration
Before diving into currency changes, it's important to understand that Sage 100's currency management requires proper setup and configuration. The base currency serves as your primary accounting currency, while additional currencies can be configured for international transactions.
Initial Setup Process The first step in changing currency settings begins in the administration panel. Navigate to Administration -> Data Management -> Currency Configuration to access the basic currency settings. When configuring your currency settings, ensure that your base currency matches your primary accounting needs.
Currency Symbol Alignment A critical aspect often overlooked is the alignment between Sage 100 and other integrated systems. For instance, while one system might use '$' as the currency symbol, another might require 'USD'. This synchronization is crucial for proper system integration.
Multi-Currency Enhancement Features
The DSD Multi-Currency enhancement suite significantly expands Sage 100's currency management capabilities. This comprehensive solution offers several key features for international businesses:
Core Functions The system allows for detailed currency configuration, including currency symbols, names, and plural forms for check printing purposes. Exchange rates can be maintained with up to 8 decimal places and can be updated automatically on a daily basis.
Bank Reconciliation Features The multi-currency bank reconciliation module enables businesses to:
- Maintain bank account balances in foreign currencies
- Process checks, deposits, and adjustments in the bank's native currency
- Generate reconciliation registers and cash flow analysis reports in each bank's currency
Setting Up Additional Currencies
When adding new currencies to your Sage 100 system, follow these structured steps:
Currency Code Setup
- Access Currency Code Maintenance
- Define new currency codes
- Set exchange rates and effective dates
- Configure currency symbols and names
Inventory Management The multi-currency inventory management enhancement provides advanced features for businesses dealing with international pricing:
- Set different prices and costs per currency
- Configure price levels in various currencies
- Generate price level reports by currency
FASB 52 Compliance
For U.S. corporations with foreign subsidiaries, FASB 52 compliance is crucial. The setup process involves eight essential steps[5]:
Step 1: Create New GL Account Establish a new General Ledger Account specifically for Equity Adjustment on Foreign Exchange within your Chart of Accounts[5].
Step 2: Currency Code Definition Define the FASB 52 Currency Code, typically USD if operating as a foreign subsidiary[5].
Step 3: Enable FASB 52 Access Multi-Currency Options and activate the 'FASB 52 Translation Required' checkbox. Configure the currency code and name, and assign the equity adjustment account[5].
Step 4: Exchange Rate History Download and configure exchange rate history for your FASB 52 currency, ensuring coverage from your oldest GL transaction to current date[5].
Step 5: Recalculation Process Execute the Recalculate FASB 52 utility to update all existing GL Transactions with appropriate rates and translations[5].
Accounts Payable Multi-Currency Management
The Accounts Payable Multi-Currency (APMC) enhancement provides robust functionality for managing international vendor payments:
Key Features
- Invoice entry in multiple currencies
- Payment processing in vendor's native currency
- Comprehensive multi-currency reporting capabilities
- Exchange rate management for each transaction
Important Considerations
Currency Lock Rules It's crucial to understand that once a vendor or customer is set up with a specific currency, changing it may be restricted. This limitation exists to maintain transaction integrity and prevent accounting discrepancies.
Exchange Rate Management Regular maintenance of exchange rates is essential for accurate financial reporting. The system allows for:
- Daily rate updates
- Historical rate tracking
- Automatic rate downloads
- Custom rate entry for specific transactions
Integration Considerations
When implementing currency changes, consider the following integration points:
System Synchronization Ensure all integrated systems use consistent currency codes and symbols. This is particularly important when working with:
- Bank reconciliation modules
- Accounts receivable
- General ledger
- Inventory management
Reporting Requirements Different currencies may require specific reporting configurations:
- Currency conversion reports
- Multi-currency financial statements
- Exchange rate variation analysis
- Consolidated reporting in base currency
Advanced Features
The multi-currency enhancement suite offers several advanced capabilities for sophisticated international operations:
Bank Account Management
- Maintain multiple currency bank accounts
- Process transactions in native currencies
- Generate reports in multiple currencies
- Track exchange rate gains and losses
Inventory Pricing
- Set prices in multiple currencies
- Maintain different price levels per currency
- Update prices based on exchange rates
- Generate currency-specific price lists
Best Practices
To ensure successful currency management in Sage 100:
Regular Maintenance
- Update exchange rates consistently
- Reconcile multi-currency accounts regularly
- Review currency conversion settings periodically
- Monitor exchange rate gains and losses
Documentation
- Maintain records of currency changes
- Document exchange rate sources
- Keep audit trails of currency-related transactions
- Archive historical exchange rates
Conclusion
Changing and managing currencies in Sage 100 requires careful attention to detail and proper configuration. The multi-currency enhancements provide robust functionality for international businesses, but proper setup and maintenance are crucial for success. Regular monitoring and updates of exchange rates, combined with careful attention to integration points, will ensure accurate financial reporting across all currencies.
Remember that currency management is not just about changing symbols or rates – it's about maintaining accurate financial records while facilitating international business operations. With proper setup and management, Sage 100's currency features can effectively support your global business needs.
Citations: [1] https://docs.greytrix.com/gumu-sage-crm-sage-100-integration/installation-guide/pre-requisites/currency-setting-in-sage-crm [2] https://www.dsdinc.com/enhancement/multicurrency/ [3] https://communityhub.sage.com/ca/sage_50/f/general-discussion/199955/cant-change-currency-or-option-to-accept-foreign-currency-transactions [4] https://communityhub.sage.com/us/sage100/f/distribution-manufacturing-and-internet-modules/191735/currency-conversion [5] https://www.dsdinc.com/2022/03/25/sage-100-multi-currency-series-your-guide-to-setting-up-fasb-52-in-dsd-multi-currency/ [6] https://ie-kb.sage.com/portal/app/portlets/results/view2.jsp?k2dockey=200427112239030 [7] https://www.acutedata.com/sage-100-ap-multi-currency/
