Foreign currency

VybeBooks has the facility to handle foreign currencies in the bill, accounts payable and general ledger modules.

The first step is entering exchange rates for any currencies that you want the system to handle.. We can modify exchange rates by going to “Misc” and then “Exchange rates” menu item. If the currency that you want to edit is not there then select “Show all currencies” and find it in the list. Make sure that the value entered is reasonably accurate. Once a currency has an exchange rate it is available for use by the system.

To track FC in the G/L you must first set the “muli-currency” sysinfo variable to TRUE. Then you can set any G/L account to any FC you wish. Make sure that you don’t modify any existing accounts that have existing data in them. To protect the system you can only set the currency when adding new accounts or editing accounts with no data yet.

Note that the exchange rate should be reasonably accurate in general but it does not have to be 100% exact. If possible you should arrange for the rates to be updated automatically but you can also enter them manually daily or at a frequency that makes sense to you. If your VybeBooks is running on Vybe Networks server then it is already being updated daily.

When adding G/L entries you will fill in the actual amounts for the detail based on the currency for that G/L account. Viewing that account will display the actual amounts. The difference will be in G/L reports such as balance sheet, trial balance and profit/loss statements. In that case the amounts will be multiplied by the exchange rate for display as well as for totals.

Since the actual amounts for FC accounts can vary from run to run you should always save a copy of any report being used for official company reporting.

VybeBooks can also track bills presented in a foreign currency. It does that by tracking the foreign currency (FC) amount as well as the native currency (NC) amount. When a FC bill is received you can enter it into the system. There will now be a drop down showing all of the selected currencies as well as the NC one. The NC one will be the default but you can select one of the others. Once posted the current exchange rate for that currency will be applied and that will be sent to the A/P system. The FC amount will continue to be tracked in the billing system.

When paying FC bills there will be an extra column showing the foreign amount. As with NC bills you can pay part or all of that amount. In the native column you will enter the exact amount that you spent to pay that bill. When the bill is fully paid - based on the FC amounts - then a calculation is made on the NC and any outstanding amount is applied to the exchange P/L account.