Epicor ERP Currency Management Course

Epicor ERP Currency Management Course
9.05.607
Disclaimer
This document is for informational purposes only and is subject to change without notice. This document and its contents, including the viewpoints, dates and functional content expressed herein are believed to be accurate as of its date of publication. However, Epicor Software Corporation makes no guarantee, representations or warranties with regard to the enclosed information and specifically disclaims any applicable implied warranties, such as fitness for a particular purpose, merchantability, satisfactory quality or reasonable skill and care. As each user of Epicor software is likely to be unique in their requirements in the use of such software and their business processes, users of this document are always advised to discuss the content of this document with their Epicor account manager. All information contained herein is subject to change without notice and changes to this document since printing and other important information about the software product are made or published in release notes, and you are urged to obtain the current release notes for the software product. We welcome user comments and reserve the right to revise this publication and/or make improvements or changes to the products or programs described in this publication at any time, without notice. The usage of any Epicor software shall be pursuant to an Epicor end user license agreement and the performance of any consulting services by Epicor personnel shall be pursuant to Epicor's standard services terms and conditions. Usage of the solution(s) described in this document with other Epicor software or third party products may require the purchase of licenses for such other products. Where any software is expressed to be compliant with local laws or requirements in this document, such compliance is not a warranty and is based solely on Epicor's current understanding of such laws and requirements. All laws and requirements are subject to varying interpretations as well as to change and accordingly Epicor cannot guarantee that the software will be compliant and up to date with such changes. All statements of platform and product compatibility in this document shall be considered individually in relation to the products referred to in the relevant statement, i.e., where any Epicor software is stated to be compatible with one product and also stated to be compatible with another product, it should not be interpreted that such Epicor software is compatible with both of the products running at the same time on the same platform or environment. Additionally platform or product compatibility may require the application of Epicor or third-party updates, patches and/or service packs and Epicor has no responsibility for compatibility issues which may be caused by updates, patches and/or service packs released by third parties after the date of publication of this document. Epicor is a registered trademark and/or trademark of Epicor Software Corporation in the United States, certain other countries and/or the EU. All other trademarks mentioned are the property of their respective owners. Copyright Epicor Software Corporation 2011. All rights reserved. No part of this publication may be reproduced in any form without the prior written consent of Epicor Software Corporation.
EDE8917905 90521-905-9228-583607 9.05.607 Revision: September 06, 2011 5:59 p.m. Total pages: 41 course.ditaval
Currency Management Course
Contents
Contents
Currency Management Course..............................................................................................5 Before You Begin....................................................................................................................6
Audience.........................................................................................................................................................6 Prerequisites....................................................................................................................................................6 Environment Setup..........................................................................................................................................7 Workshop Constraints..............................................................................................................................7
Overview.................................................................................................................................8 Application Setup...................................................................................................................9

Company Configuration................................................................................................................................10 Maintenance Programs..................................................................................................................................10 Currency Master Maintenance................................................................................................................11 Workshop - Create a Currency Code...............................................................................................12 Reporting Currency Actions.............................................................................................................13 Workshop - Add a Reporting Currency.....................................................................................13 Rate Type Maintenance..........................................................................................................................14 Workshop - Update a Rate Type......................................................................................................15 Exchange Rate Entry...............................................................................................................................16 Workshop - Enter Exchange Rates...................................................................................................17 Workshop - Activate Currency.........................................................................................................17 Country Maintenance.............................................................................................................................18 Workshop - Create a Country Record..............................................................................................18 Customer and Supplier Maintenance......................................................................................................18 Workshop - Update a Customer Country and Currency...................................................................19 Workshop - Update a Supplier Country and Currency......................................................................19
Daily Currency Processing....................................................................................................21

Buy and Sell Products in Foreign Currencies...................................................................................................21 Workshop - Create a Buyer Record ........................................................................................................22 Workshop - Create a Purchase Order......................................................................................................23 Workshop - Create an Advanced Billing Invoice.......................................................................................24 Add an Invoice Group......................................................................................................................24 Add an Invoice................................................................................................................................24 Add an Advanced Bill Line to the Invoice.........................................................................................25 Print Group Edit List.........................................................................................................................25 Post the Invoice...............................................................................................................................25 Workshop - Create a Miscellaneous Invoice.............................................................................................26 Create an Invoice Group and Header...............................................................................................26 Add an Invoice Line.........................................................................................................................27 Post the Invoice...............................................................................................................................27 Lock Exchange Rate.......................................................................................................................................27 Workshop - Create an Order, Lock the Exchange Rate, and Invoice.........................................................28
Epicor ERP | 9.05.607
Contents
Create a Sales Order........................................................................................................................28 Lock in the Order's Exchange Rate...................................................................................................28 Add a Line to the Sales Order..........................................................................................................28 Create an Invoice.............................................................................................................................29 Add an Invoice Line and Verify the Exchange Rate...........................................................................29 Update Currency Exchange Rates...................................................................................................................30 Workshop - Update an Exchange Rate....................................................................................................30 Currency Revaluation Process.........................................................................................................................31 Generate Currency Revaluation Report...................................................................................................31 Workshop - Generate the Currency Revaluation Report...................................................................32 Currency Revaluation Process..................................................................................................................32 Workshop - Process a Currency Revaluation.....................................................................................33 Workshop - Review Locked Sales Order for Rate Changes................................................................34 GL Currency Revaluation Process....................................................................................................................34 Non-Base Currency Payments and Cash Receipts............................................................................................35 Workshop - Pay a Supplier in a Foreign Currency....................................................................................35 Add a Payment Entry Group............................................................................................................35 Update the Payment Currency and Select an Invoice to Pay..............................................................36 Verify the Exchange Rate Revaluation..............................................................................................36 Workshop - Record a Foreign Currency Cash Receipt..............................................................................36 Add a Cash Receipt Entry Group......................................................................................................36 Create an Invoice Payment..............................................................................................................37 Select the Invoice to Pay..................................................................................................................37 Verify the Currency and Exchange Rate are Correct.........................................................................37 Workshop - Apply Cash in a Different Currency......................................................................................38
Conclusion.............................................................................................................................39

This course explains the setup considerations necessary when implementing Currency Management, as well as demonstrates how to utilize and account for ever-changing exchange rates within your application. The topics covered in this course include base currency configuration, the creation and maintenance of Currency Management, the revaluation of currency exchange rates, and finally, best practices for dealing with currency exchange rate changes on sales orders, purchase orders, invoices, bank balances, and payments. Hands-on workshops are included to guide you through the above topics and provide you with detailed examples of the Currency Management process flow. Upon successful completion of this course, you will be able to: Establish a currency record. Understand how a company's base currency is configured. Setup and maintain currency code exchange rates. Modify customer and supplier country and currency codes. Create and lock in currency exchange rates on orders and invoices. Pay Accounts Payable (AP) invoices in a foreign currency. Record foreign currency cash receipts. Run the Currency Revaluation Process and understand the report derived from it.
Before You Begin
Before You Begin

Read this topic for information you should know in order to successfully complete this course.
Audience
Specific audiences will benefit from this course. CFO/Controller AP Clerk AR Clerk
Prerequisites
In order to complete the workshops in this course, all necessary modules must be licensed and operating in your training environment. For more information on the modules available, contact your Epicor Customer Account Manager at EpicorCAM@epicor.com. It is also important you understand the prerequisite knowledge contained in other valuable courses. Navigation Course - This course introduces navigational aspects of the Epicor application's user interface. Designed for a hands-on environment, general navigation principles and techniques are available at each of the interface levels in the Epicor application - system, module, and program. Workshops focus on each of these levels and guide you through each navigational principle introduced. Financial Foundations Course - This course introduces you to the maintenance programs in the Epicor application that set the basis for the financial activities within your company. General Ledger Course - This course provides a clear perspective of the maintenance programs, concepts, processes, and reporting tools you encounter as you work within the General Ledger (GL) module. System Flow - This course introduces a basic quote to cash scenario that includes the process from the initial customer quote to final cash receipts and payment of supplier invoices. This course emphasizes the series of processes that make up the quote to cash process by using a simple scenario to highlight various transactions. Your organization may have more complex processing routines than those described in this course.
Before You Begin
Environment Setup
The environment setup steps and potential workshop constraints must be reviewed in order to successfully complete the workshops in this course. Your Epicor training environment, in which the Epicor demonstration database is found, enables you to experience Epicor functionality in action but does not affect data in your live, production environment. The following steps must be taken to successfully complete the workshops in this course. 1. Verify the following or ask your system administrator to verify for you: Your Epicor training icon (or web address if you are using Epicor Web Access) points to your Epicor training environment with the Epicor demonstration database installed. Do not complete the course workshops in your live, production environment. Note It is recommended that multiple Epicor demonstration databases are installed. Contact Support or Systems Consulting for billable assistance. The Epicor demonstration database is at the same service pack and patch as the Epicor application. Epicor's education team updates the Epicor demonstration database for each service pack and patch. If your system administrator upgrades your Epicor application to a new service pack or patch, he or she must also download the corresponding Epicor demonstration database from EPICweb > Support > Epicor > Downloads and install it. If this is not performed, unexpected results can occur when completing the course workshops. Your system administrator restored (refreshed) the Epicor demonstration database prior to starting this course. The Epicor demonstration database comes standard with parts, customers, sales orders, and so on, already defined. If the Epicor demonstration database is shared with multiple users (that is, the database is located on a server and users access the same data, much like your live, production environment) and is not periodically refreshed, unexpected results can occur. For example, if a course workshop requires you to ship a sales order that came standard in the Epicor demonstration database, but a different user already completed this workshop and the Epicor demonstration database was not restored (refreshed), then you will not be able to ship the sales order. Epicor's education team has written the course workshops to minimize situations like this from occurring, but Epicor cannot prevent users from manipulating the data in your installation of the Epicor demonstration database. 2. Log in to the training environment using the credentials manager/manager. If you are logged into your training environment as a different user, from the Options menu, select Change User. From the Main menu, select the company Epicor Education (EPIC06). From the Main menu, select the Main Plant.
3. 4.
Workshop Constraints
Below is a list of workshops in this course that can be performed only once in each instance of a restored (refreshed) database. Where applicable, a detailed explanation of the workshop constraints is documented in the workshop itself. Workshop - Update a Rate Type (steps 3-5) Workshop - Pay an Invoice
Overview
Overview
The Currency Management module automates the process of conducting transactions internationally using multiple currencies. You can use this module to create multiple currency records. The Currency Management module automatically pairs each currency with the other currencies to create source and target currency relationships. Using rate types, you define the conversion rules for each currency pair. You can then enter and update exchange rates as often as necessary. The application automatically applies these exchange rates against the international transactions generated in the current company. If necessary, rates can be overridden and locked for specific transactions.
Application Setup
Application Setup
This section of the course establishes the importance of application setup in the Currency Management module, not only for accuracy, but also for the integrity of the processes throughout the Epicor application which utilize these records. Maintenance program setup is discussed and good practices are demonstrated in hands-on workshops. In addition, this section provides an explanation of how and where a company's base currency is defined.
Application Setup
Company Configuration
A number of fields in Company Configuration relate to currency setup. Not all fields within Company Configuration are discussed in this course. For more information on Company Configuration, refer to the Application Help. Menu Path: System Management > Company Maintenance > Company Important This program is not available in the Epicor Web Access interface. You can launch this program from an Epicor Smart Client (Windows ) interface. Base Currency Code The Base Currency Code pane, found on the Company Configuration Detail sheet, is only accessible for updates when the Currency Management license is not installed. Even when the module is licensed, this field is only available for informational purposes. If the Currency Management license is installed, a country record is used to pull in a company's base currency code. Num of Dec on Cost, Price, and General These three fields on the Company > Detail sheet allow you to enter a number of decimals for the company's cost, price, and general transactions. AR Invoice Currency Settlement On the Modules > Finance > Accounts Receivable > General sheet, there is an Allow Invoice Settlement in Different Currency check box. This check box (and Accounts Receivable (AR) currency settlement) allow you to receive a payment from a customer in a different currency than was issued in the invoice. Example A company does business with a customer who has a main office in the United Kingdom. The invoice for goods shipped is in Pound Sterling (GBP). The payment received for this invoice is in Euros. Invoice currency settlement allows you to accept payment in a currency different than the invoice currency. Country Maintenance Country Maintenance can be found in both the Accounts Receivable and Accounts Payable modules under the Setup folder. You must create a country record for your company in order to define the base currency populated on the Company Configuration's Detail sheet. Because the Currency ID field is unavailable for update on the Company Configuration's Detail sheet, the country record acts as a host to the company's base currency code. Once the new country record is selected in the Country field on the Company Configuration's Detail sheet, the currency attached to it populates the company's Currency ID field.
Maintenance Programs
In this section, some fields contained in the following maintenance programs are discussed. Not all fields in each of these programs are reviewed; only the fields required to successfully complete foreign currency transactions. Currency Master Rate Type Country
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Application Setup
Supplier Customer
Currency Master Maintenance

Use Currency Master Maintenance to enter and update each currency for which your organization conducts business. You can create currencies for a specific company or global currencies for your entire organization. Each currency record defines the primary information needed to generate financial transactions with customers and suppliers in a specific country. A currency record contains the key details about the currency, such as its name, description, and currency symbol. This information is then leveraged by the Epicor application for any transaction conducted using this currency. A currency record can also contain the rounding rules it uses for various value types such as Unit Price, Unit Tax, and Extended Price. You can round these values up, down, and to the nearest value. You can also decide not to use a rounding rule against a specific value type. A GL control type and GL control can be assigned to each currency record. GL control types provide the template for the account and journal contexts used for transactions against the currency record; GL controls define the specific journals and accounts which record transactions in this currency. Assign currency records to supplier records and to specific Bill to locations on customer records. The selected currency becomes the default on any transaction with the specific customer Bill to location or supplier. Override this default currency by selecting a different currency on sales orders, quotes, purchase orders, and invoices. Currencies can also be defined as a global currency for use in a multi-company environment. Other companies within your database can link to this global record and pull in the initial currency record. Use this functionality when you need to set up general ledger consolidations between multiple companies within your organization. When you create a new company, define its base currency. Be sure to enter the main currency this company uses, such as United States Dollars (USD) or Russian Ruble (RUR). Tip If you are setting up currencies for use in multiple companies, be sure to verify the currency codes match on the currency master records used by all companies. Each record has both a Currency Code and a Currency ID value. The Currency ID defines how the currency displays on various reports and programs within the company; the Currency Code defines the entire currency record for uses such as consolidation and other application processes. A typical error can occur when you set up a new child company. For example, you create a child company which uses US dollars. The first currency you create is by default assigned the BASE currency code and then you enter a currency ID of USA; this record indicates US dollars in the new company. You then create a currency record in the parent company to consolidate with this child company, and you enter a currency code and a currency ID with USA values. Because these currency code values are different, the Epicor application will treat these records as separate currencies, and the exchange rate is calculated as a zero value. Transactional, Base, and Reporting Currencies Each active currency can be used as a transactional or a reporting currency: Transactional - A currency used on a specific document, or record, in order to conduct business on that record. Transactional currencies are used for records created for external transactions with customers and suppliers, and internal transactions with plants and companies within your organization. A transactional currency is also called a Document currency; you can have as many document currencies as you need for all the localities in which you conduct business. If at any point you make a change to a transactional currency, click the Actions menu and run the Add Reporting Currency process. This process updates any reporting currency transactions linked to the updated transaction currency. To undo these changes, run the Remove Reporting Currency process.
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Application Setup
Reporting - A currency your company uses to store, or report, amounts for financial reports. These currencies are used to calculate the final income and expense amounts generated by the business of a specific company. These amounts are officially expressed through a reporting currency. You can have up to three reporting currencies for each company. Base - The primary currency used by a company. Technically this currency is also considered a reporting currency by the application as well (you can see documentation which refers to each company having four currencies). The base currency is unique, however, as it is the default currency used on all transactions generated within a specific company. When the application cannot find another currency to use for a transaction, it calculates the amounts using the base currency defined for the company. Important Each company can only have three reporting currencies and one base currency. Each company can only have four reporting currencies (including the base currency). Business transactions are recorded in all four reporting currencies. Use these currencies in published reports and financial documents. If your organization conducts business in other countries, you run quarterly and annual reports in the base and reporting currencies, displaying financial results with the correct currency values. Menu Path Navigate to this program from the Main Menu: Financial Management > Accounts Payable > Setup > Currency Master Financial Management > Accounts Receivable > Setup > Currency Master Financial Management > Currency Management > Setup > Currency Master Important This program is not available in the Epicor Web Access interface. You can launch this program from an Epicor Smart Client (Windows ) interface.
Workshop - Create a Currency Code

In this workshop, create a currency code record. Navigate to Currency Master Maintenance. Menu Path: Financial Management > Currency Management > Setup > Currency Master Important This program is not available in the Epicor Web Access interface. You can launch this program from an Epicor Smart Client (Windows ) interface. 1. From the New menu, select New Currency. 2. In the Currency Code field, enter XXX (where XXX are your initials). 3. In the Currency ID field, enter XXX (where XXX are your initials). The Currency ID defines the unique visible identifier for the currency. This value displays on reports and windows that show currency information. 4. In the Description field, enter XXX-Imaginary Dollars (where XXX are your initials). 5. In the Currency Symbol field, enter XXX (where XXX are your initials). 6. Select the Global Currency check box. This check box indicates whether this currency can be used by other companies within your organization. Select this check box if you want to make this currency available across your entire organization.
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Application Setup
If the Global Lock check box is not selected, updates made to a global currency record automatically update the local version of each currency record. 7. Leave the Name and Document Description fields blank for this workshop. 8. Navigate to the GL Control > Detail sheet. 9. From the New menu, select New GL Control. 10. Click the Type button to search for and select Currency. 11. In the Control field, enter USD. To simplify this workshop, we use the same GL control as the base currency. 12. Click Save and exit Currency Master Maintenance.
Reporting Currency Actions

The Currency Master Maintenance Actions menu contains three options with regards to reporting currencies. The three options available are as follows: Add Reporting Currency - Use this process to update information for any reporting currency transactions linked to the current transactional currency. Remove Reporting Currency - Use the Remove Reporting Currency process to undo the transaction changes generated by the Add Reporting Currency process. View Reporting Currency Slots - Use this option to view a list of current reporting currencies. When you change an existing transactional currency record, you must update and recalculate all transactions generated by any reporting currencies associated with the current transactional currency. Adding a reporting currency updates all of these records to complete the changes. If the changes you made to a transactional currency were incorrect, you can remove any changes made to reporting currency transactions by running this command.
Workshop - Add a Reporting Currency

In this workshop, add a reporting currency to the company. Reporting currencies are used to store or report amounts for financial reports. Reporting currencies can calculate the final income and expense amounts generated by the company. 1. Navigate to the Currency > Detail sheet. 2. In the Currency Code field, enter GBP and press Tab. Details for the Great Britain Pound currency record display. Note the Reporting Currency check box on this record is not selected. 3. From the Actions menu, select Add Reporting Currency. The Reporting Currency Process Set Currency: GBP window displays. 4. Click Generate Only. 5. Close the Reporting Currency Process Set Currency: GBP window. 6. After a few minutes, click Refresh.
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Application Setup
The Reporting Currency check box on this record is now selected. The length of time depends on the amount of transactions in the current database company, so you may have to click refresh several times before the field displays as selected. To check the status of the Currency Report Process, view the System Monitor. 7. From the Actions menu, select View Reporting Currency Slots. The Reporting Currencies window displays and Great Britain Pound populates Slot ID 2. 8. Close the Reporting Currencies window and exit Currency Master Maintenance.
Rate Type Maintenance

Use Rate Type Maintenance to create and update currency rate types your company uses. Rate types define the conversion rules the Epicor application applies against all possible source and target currency pairs available within your company. Each rate type is a collection of overall default rate values and conversion rules. You first define the overall rate values for the group. For example, the Cross-Rate Currency and Alternative Cross-Rate Currency values define additional, Interim currencies used by specific conversion rules in the group. You next define how each currency pair is converted using this rate type. Each pair consists of a source currency that indicates the original currency used in the transaction, and a target currency that indicates the currency used for the final amount. Each target and source currency pair must have a conversion rule selected that defines the method used to calculate the converted amounts between the two currencies. You can also indicate that a specific rate type is a global record. If your organization requires a multi-company environment, you can create parent rate types in one company, define them as global records, and then have child companies link to these records. You activate these global rate types within each company using External Company Maintenance. If changes are made to the parent rate type, these changes automatically update the linked rate type records within the child companies. This ensures you use consistent currency conversion rules throughout your organization. Depending on your company needs, you may need to create different rate types for different business purposes. For example, you need one rate type to convert the official rates required on invoices, but for management purposes, you also need another rate type that defines conversions that use daily buy and sell rates. Each rate type is used to accurately convert currencies to reflect business activity needs. After you create the rate type, select that type within Exchange Rate Entry. Enter the specific exchange values in this program. The application uses the conversion rules defined for the currency pairs within the selected rate type to calculate the values between the source and target currencies. The application uses the following rules to convert currencies: Direct - Multiplies an amount in the source currency against the exchange rate for the target currency. Logic Target Currency Amount = Source Currency Amount * Target Exchange Rate
Inverse - Divides an amount in the source currency against the exchange rate for the target currency. Logic Target Currency Amount = Source Currency Amount/Target Exchange Rate
Cross-Rate - Uses an intermediate, or Interim, currency to convert amounts between the source and target currencies. Depending on the direction, the conversion rule between Source to Interim and Interim to Target will either be Direct or Inverse. The Interim currency is selected as a default value for the rate type; you select this currency from the Cross-Rate list.
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Application Setup
Logic Direct Conversion Method: Target Currency Amount = (Source Currency Amount * Interim Exchange Rate) *Target Exchange Rate Inverse Conversion Method: Target Currency Amount = (Source Currency Amount/Interim Exchange Rate) /Target Exchange Rate By default, the application does not round the Interim amount. You can, however, specify the number of decimals to use for rounding for the Cross-Rate currency. Alternate Cross-Rate - Uses an alternate Interim currency to convert amounts between the source and target currencies. Just like the Cross-Rate conversion, the conversion rule between Source to Interim and Interim to Target will either be Direct or Inverse depending on the conversion direction. The alternate Interim currency is selected as a default value for the rate type; you select this currency from the Alternate Cross-Rate list. Logic Direct Conversion Method: Target Currency Amount = (Source Currency Amount * Interim Exchange Rate) *Target Exchange Rate Inverse Conversion Method: Target Currency Amount = (Source Currency Amount/Interim Exchange Rate) /Target Exchange Rate By default, the application does not round the Interim amount. You can specify the number of decimals to use for rounding for the Alternate Cross-Rate currency. Double Cross-Rate - Uses two Interim currencies to convert the source amount to the target amount. This conversion rule runs the Direct calculation to convert the amounts from the Source to Primary Interim, Primary Interim to Secondary Interim, and Secondary Interim to Target. You define the Interim currencies as default values on the rate type; the Cross-Rate currency is the Primary Interim and the Alternate Cross-Rate currency is the Secondary Interim. Logic Target Currency Amount = (((Source Currency Amount * Primary Interim Exchange Rate) * Secondary Interim Exchange Rate) * Target Exchange Rate) By default, the application does not round the Primary and Secondary Interim amounts. Reverse Double Cross-Rate - Uses two Interim currencies to convert the source amount to the target amount. This conversion rule runs the Inverse calculation to convert the amounts from the Source to Primary Interim, Primary Interim to Secondary Interim, and Secondary Interim to Target. You define the Interim currencies as default values on the rate type; the Cross-Rate currency is the Primary Interim and the Alternate Cross-Rate currency is the Secondary Interim. Logic Target Currency Amount = (((Source Currency Amount/Primary Interim Exchange Rate)/Secondary Interim Exchange Rate)/Target Exchange Rate)
Menu Path Navigate to this program from the Main Menu: Financial Management > Currency Management > Setup > Rate Type
Workshop - Update a Rate Type

Update an existing rate type with the rules of your new currency. Navigate to Rate Type Maintenance. Menu Path: Financial Management > Currency Management > Setup > Rate Type 1. In the Code field, search for and select Main Rate Type.
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Application Setup
2. In the tree view, expand the tree. 3. On the Detail sheet, in the Cross-Rate field, verify United States Dollar is selected. 4. From the tree view, select the conversion pair USD-XXX (where XXX are your initials). The Conversion Rules > Detail sheet displays. 5. In the Conversion Rule field, verify Undefined displays. When a new currency record is created, this field displays Undefined until conversion rules are set for all its conversion pairs. Until all conversion rules are defined, this rate group will remain inactive. 6. In the Conversion Rule field, select Direct and click Save. 7. From the tree view, select the conversion pair CAD-XXX (where XXX are your initials). 8. In the Conversion Rule field, select Direct and click Save. 9. Navigate to the Conversion Rules > Matrix sheet. 10. In the XXX column (where XXX are your initials), update all Undefined conversion rules to Cross Rate. Do not update the Direct or Inverse rules you already set. 11. Once finished, navigate to the Detail sheet. 12. Select the Inactive check box to activate changes. 13. Click Save and exit Rate Type Maintenance.
Exchange Rate Entry

Use Exchange Rate Entry to define specific exchange rates for each currency pair. The Epicor application uses these rates to calculate converted amounts on international transactions. An exchange rate converts the value of one currency into an equivalent value in another currency. You enter exchange rates by creating an exchange rate record. You first select the rate type that will handle the exchange rates. The rate type first defines the currency pairs, each of which consist of an original, or source currency and a receiving, or target currency. The rate type also defines the conversion rule such as Direct, Cross-Rate, Double Cross-Rate used on each currency pair. You next define the Effective Date for the exchange rates. The application uses these starting from this date until the application clock reaches the Effective Date on the next exchange rate record. You can enter the exchange rates for each currency pair directly through this program. You can also import the rates from an external file generated by Epicor Service Connect. This import program is located under the Actions menu. Each exchange rate indicates how many units of the target currency are needed to buy one unit of the source currency. When you enter a business transaction in one currency, the application uses this exchange rate to convert this value into equivalent values as this transaction is tracked on various records, books, plants, and companies throughout your organization. Menu Path Navigate to this program from the Main Menu: Financial Management > Currency Management > General Operations > Exchange Rate Entry
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Application Setup
Workshop - Enter Exchange Rates

After creating your new currency, enter and update exchange rates in Exchange Rate Entry. Navigate to Exchange Rate Entry. Menu Path: Financial Management > Currency Management > General Operations > Exchange Rate Entry Important Due to the logic of Exchange Rate Entry, only one person at a time can update the same rate type record. When working in a shared database, you must take turns completing this workshop. 1. In the Rate Type field, search for and select Main Rate Type. 2. In the Effective Date field, select today's date. 3. Navigate to the Matrix sheet. 4. In the Add New Confirmation window, click Yes. 5. In the tree view, select Effective Date : MM/DD/YYYY Currencies : USD-XXX (where MM/DD/YYYY is today's date and XXX are your initials). 6. Navigate to the Detail sheet, and in the Rate Value field, enter 0.500000. 7. Click Save. 8. In the tree view, select Effective Date : MM/DD/YYYY Currencies : CAD-XXX (where MM/DD/YYYY is today's date and XXX are your initials). 9. In the Rate Value field, enter 0.525335. 10. Click Save and exit Exchange Rate Entry.
Workshop - Activate Currency

You have created a new currency, updated the rate type, and added exchange rates for the currency. Now, you must activate the currency master record to utilize it in the application. Navigate to Currency Master Maintenance. Menu Path: Financial Management > Currency Management > Setup > Currency Master Important This program is not available in the Epicor Web Access interface. You can launch this program from an Epicor Smart Client (Windows ) interface. 1. In the Currency Code field, search for and select XXX (where XXX are your initials). 2. Clear the Inactive check box. 3. Click Save. The currency is now ready for use. 4. Exit Currency Master Maintenance.
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Application Setup
Country Maintenance
In Country Maintenance, the Detail sheet defines the currency default for each country established. While there are many other fields on this sheet, the Currency Management module only relies on the Currency field. Menu Path: Financial Management > Accounts Receivable > Setup > Country Country Maintenance displays under the Setup folder in several modules. This course uses the path found under Accounts Receivables.
Workshop - Create a Country Record

Now that a currency code has been created for the XXX-Imaginary Dollar (where XXX are your initials), a country can be set up to use this currency as its default. Navigate to Country Maintenance. Menu Path: Financial Management > Accounts Receivable > Setup > Country 1. From the New menu, select New Country. 2. In the Country field, enter Imagine-XXX (where XXX are your initials). 3. In the Currency field, select XXX-Imaginary Dollars (where XXX are your initials). 4. Click Save. 5. Exit Country Maintenance.
Customer and Supplier Maintenance

Customers and suppliers may have different currency specifications. You can set up currencies for your customers and suppliers within Customer Maintenance and Supplier Maintenance. The fields discussed in this portion of the course are only those that pertain to the Currency Management module. While there are many fields within these programs, the Currency Management module only refers to the Country and Currency fields for information. The other fields are covered in Application Help. The ability to recognize and update both the Currency and Country fields when creating a company's suppliers and customers is essential to maintaining a multi-currency environment. To ensure that the proper currency defaults into orders, invoices, cash receipts, and checks, it is crucial for each record to be set up correctly. For both customers and suppliers, the Country and Currency ID definitions located on the Company Configuration Detail sheet automatically default in when adding new records. If the Country field is later updated, the Currency field automatically updates with the currency set to default on the updated country record. This logic is not the same if the Currency field is changed first on a supplier or customer. If that occurs, the Currency field does not dictate the Country field on the supplier or customer record. The two fields become separate from each other at that point. Customer Maintenance Menu Path: Financial Management > Accounts Receivable > Setup > Customer Customer > Detail Sheet: Country field Billing > Detail Sheet: Currency field
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Application Setup
Supplier Maintenance Menu Path: Financial Management > Accounts Payable > Setup > Supplier Supplier > Detail Sheet: Currency field Supplier > Address Sheet: Country field Both Customer Maintenance and Supplier Maintenance are accessible through various modules, but this course uses Accounts Receivable and Accounts Payable modules.
Workshop - Update a Customer Country and Currency

Update an existing customer's country and currency. Navigate to Customer Maintenance. Menu Path: Financial Management > Accounts Receivable > Setup > Customer Important Due to the logic of Customer Maintenance, only one person at a time can update the same customer record. When working in a shared database, you must take turns completing this workshop. 1. In the Customer field, search for and select BARRISTON . Notice the Country field displays USA. 2. Navigate to the Billing > Bill To sheet. 3. In the Name field, enter Barriston. 4. In the Country field, select Imagine-XXX (where XXX are your initials). The customer's country is now updated. 5. Navigate to the Billing > Detail sheet. 6. In the Currency field, select XXX-Imaginary Dollars (where XXX are your initials). The customer's currency is now updated. 7. Click Save. 8. Exit Customer Maintenance.
Workshop - Update a Supplier Country and Currency

Update an existing supplier's Country and Currency fields to reflect the country of Imagine-XXX and the XXX-Imaginary Dollar (where XXX are your initials) . Navigate to Supplier Maintenance. Menu Path: Financial Management > Accounts Payable > Setup > Supplier Important Due to the logic of Supplier Maintenance, only one person at a time can update the same supplier record. When working in a shared database, you must take turns completing this workshop. 1. In the Supplier field, search for and select Global Supply. The Currency field on the Supplier > Detail sheet displays United States Dollar. 2. Navigate to the Supplier > Address sheet.
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Application Setup
The Country field displays USA, which represents the configured country for the supplier. 3. In the Country field, select Imagine-XXX (where XXX are your initials). 4. Click Save. 5. Navigate to the Supplier > Detail sheet. The Currency field now displays XXX-Imaginary Dollars (where XXX are your initials), which is the currency that was set up for the country of Imagine-XXX in the Workshop - Create a Country Record. 6. Exit Supplier Maintenance.
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Daily Currency Processing

This portion of the course focuses on key processes involved when utilizing multiple currencies. Key processes include: Entering a purchase order for a foreign currency supplier. Entering an invoice for a foreign supplier and customer. Entering a sales order for a foreign currency customer. Locking in an exchange rate on a customer's order and invoicing it. Generating and understanding the Currency Revaluation Report, which provides you with the tools needed to manage their general ledger in a multicurrency environment. Running the Currency Revaluation Process. This process is the Currency Management module's core function for adjusting exchange rates on open transactions and automatically posting any resulting gains and losses to the defined general ledger accounts. Paying an invoice in a foreign currency. Entering a foreign currency cash receipt.
Buy and Sell Products in Foreign Currencies

Currency Management automates the process of both buying and selling in foreign currencies. With tracking of default currencies, as well as extensive exchange rate tables, the amount of manual transactions is greatly reduced. Every transaction's currency is defined by how the Currency field is populated. This field is only available if the Currency Management module is installed, and is automatically populated with the customer or supplier's currency record. Change is allowed in this field if needed; however, the code which is selected on an order at the time of entry does follow through to the invoice and payments created for it. Hands-on workshops are included in this portion of the course allowing you to view the flow of currency throughout the application.
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Workshop - Create a Buyer Record

Before creating a purchase order, a buyer must be set up. Navigate to Buyer Maintenance. Menu Path: Material Management > Purchase Management > Setup > Buyer 1. From the New menu, select New Buyer. 2. In the Buyer and Name fields, enter XXX (where XXX are your initials). 3. From the New menu, select New Authorized User. 4. In the User field, select System Manager. Selecting System Manager as an authorized user enables you to continue using your manager account to create a purchase order on behalf of the newly created buyer. 5. Click Save. 6. Exit Buyer Maintenance.
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Workshop - Create a Purchase Order

Your company wants to stock a special part made only in the country of Imagine-XXX (where XXX are your initials). Through research, you find an excellent supplier who carries that part but they only accept orders and payments in XXX-Imaginary Dollars. Complete the steps below to create a PO for your Imagination supplier. Before moving forward with this workshop, note that not all steps to create an accurate and operational PO are explained in this workshop. Only the required fields are populated, as this workshop is only used in this course to display how purchase orders are capable of being created in non-base currencies. While there are many fields within Purchase Order Entry, non-base currency orders only differ by a few fields. These fields are covered in this course while the other fields are covered in other courses and are fully explained in the Application Help. Navigate to Purchase Order Entry. Menu Path: Material Management > Purchase Management > General Operations > Purchase Order Entry 1. From the New menu, select New PO. Today's date defaults into the PO Date field. Do not override this date. 2. In the Supplier field, enter GLOBE and press Tab. 3. In the Buyer field, select XXX (where XXX are your initials). 4. Navigate to the Lines > Detail sheet. 5. From the New menu, select New Line. 6. In the Part/Rev field, enter EP1000 and press Tab. 7. In the Our Quantity field, enter 10.00. 8. In the Unit Price field, enter 10.00. 9. Navigate to the Header > Detail sheet and make note of the PO number ___________. 10. Verify the Currency field defaults in as XXX-Imaginary Dollars (where XXX are your initials). Important If you are working in a shared environment and had to take turns completing the Workshop - Update a Supplier Country and Currency, the currency you created in the Workshop - Create a Currency Code may not populate this field. If that is the case, in the Currency field, select XXX-Imaginary Dollars (where XXX are your initials).
11. Review the exchange rate that populates the $ -> XXX field (where XXX are your initials). 12. Click Save and exit Purchase Order Entry.
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Workshop - Create an Advanced Billing Invoice

A foreign supplier, Global Supply, requires a 50% deposit be sent before any goods are shipped out to your company. You decide the best way to handle this is to create an Advanced Billing Line Invoice so that when the goods are finally received, the dollars paid in advance are deducted from the final invoice. Before moving forward with this workshop, note that not all steps to create an Accounts Payable (AP) invoice are reviewed in this workshop. Only the required fields needed to add an advanced billing invoice are populated, as this workshop is used in this course to display how invoices are capable of being added in non-base currencies. While there are many fields within Accounts Payable Invoice Entry, non-base currency invoices only differ by a few fields. These fields are covered in this course while the other fields are fully explained in the Application Help.
Add an Invoice Group

Navigate to AP Invoice Entry. Menu Path: Financial Management > Accounts Payable > General Operations > Invoice Entry 1. From the New menu, select New Group. 2. In the Group field, enter XXX (where XXX are your initials). 3. Leave the remaining default information. 4. Click Save.
Add an Invoice
1. From the New menu, select New Invoice. 2. In the Ref PO field, enter the PO number you created in the Workshop - Create a Purchase Order. 3. In the Invoice field, enter XXX-1 (where XXX are your initials). This value represents the invoice number. 4. In the Invoice Date field, select today's date. 5. In the Amount field, enter 50.00. 6. Verify that the Terms field populates with 2/10 Net 30. This field must be populated for the invoice to post. Its value does not impact this workshop. 7. In the Payment Method field, select AP Check Payment. 8. Verify the Currency field populates with XXX-Imaginary Dollars (where XXX are your initials). This value defaults in as the currency of the PO. 9. Click Save.
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Add an Advanced Bill Line to the Invoice

1. From the New menu, select New Adv Bill Line. 2. In the PO/Line fields, search for and select the available line. The available line is the first line and release from the PO selected on the invoice's Header > Detail sheet. 3. In the Ext Amount field, enter 50.00. 4. Click Save.
Print Group Edit List

1. From the Actions menu, select Group > Print Group Edit List. The Invoice Entry - Group Edit List window displays. 2. Click Print Preview. The edit list prints in the base currency (United States Dollars), so the amount of the invoice is 100.00 instead of 50.00. 3. Close the report and the Invoice Entry - Group Edit List window.
Post the Invoice

1. From the Actions menu, select Group > Post. The AP Invoice Post Process window displays. 2. Click Submit. 3. Close the AP Invoice Post Process window and exit AP Invoice Entry.
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Workshop - Create a Miscellaneous Invoice

Your customer, Barriston Engineering needs to be billed for freight separately from their shipment invoice. Barriston Engineering is located in the country of Imagine-XXX and its currency is XXX-Imaginary Dollars (where XXX are your initials). Important If you are working in a shared environment and had to take turns completing the Workshop - Update a Customer Country and Currency, the country and currency for Barriston Engineering may not display as Imagine-XXX and XXX-Imaginary Dollars (where XXX are your initials). Notes are added to this workshop to guide you through updating the invoice to reflect the correct currency. The country of the customer does not affect the outcome of this workshop, so you do not have to update Barriston Engineering's customer record. Before moving forward with this workshop, note that not all steps for creating an AR miscellaneous invoice are reviewed. Only the minimum amount of fields needed to add a miscellaneous invoice are populated, as this workshop is included in this course only to display how invoices are capable of being added in non-base currencies. While there are many fields within Account Receivable Invoice Entry, non-base currency invoices only differ by a couple of fields. These fields are covered in this course while the other fields are covered in other courses as well as in the Application Help.
Create an Invoice Group and Header

Navigate to AR Invoice Entry. Menu Path: Financial Management > Accounts Receivable > General Operations > Invoice Entry 1. From the New menu, select New Group. 2. In the Group field, enter XXX2 (where XXX are your initials). 3. Click Save. 4. From the New menu, select New Miscellaneous Invoice. 5. In the Customer field, enter Barriston and press Tab. 6. Verify the Currency field defaults in as XXX-Imaginary Dollars (where XXX are your initials). Important If you are working in a shared environment and had to take turns completing the Workshop - Update a Customer Country and Currency, the currency you created in the Workshop - Create a Currency Code may not populate this field. If that is the case, in the Currency field, select XXX-Imaginary Dollars (where XXX are your initials).
7. Click Save.
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Add an Invoice Line

1. From the New menu, select New Line. The Line > Detail sheet displays. 2. Enter the following information: Field Part/Rev Description Quantity Unit Price Data Freight Freight 1 100.00
3. Click Save. 4. Navigate to the Group > Detail sheet and review the data populating the Invoices grid.
Post the Invoice

1. From the Actions menu, select Group > Post. The AR Invoice Post Process window displays. 2. Click Submit. 3. Close the AR Invoice Post Process window and exit AR Invoice Entry.
Lock Exchange Rate

The Lock check box, available on some transactions, allows you to lock in the currency exchange rate defined at the time of the transaction. That exchange rate is then used for all future related transactions such as payments, cash receipts, debit and credit memos, or wire transfers. Actual changes in the market rates are ignored. As long as the Lock check box is selected on one of the following transactions, it is never revalued by the Currency Revaluation Process: Sales Orders Accounts Receivable Invoices Purchase Orders Accounts Payable Invoices
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Workshop - Create an Order, Lock the Exchange Rate, and Invoice

Per an agreement between your company and Canadian customer, Toronto Tooling, all orders and invoices for the 4600-1 part must have a locked exchange rate of 1.08 USD->CAD. Complete the steps below to create and lock in an exchange rate on a sales order. Before moving forward with this workshop, note that not all steps to create an accurate and operational sales order are explained or walked through in this workshop. Only the required fields are populated, as the workshop is used in this course to display how purchase orders are capable of being added in non-base currencies. While there are many fields within Sales Order Entry, non-base currency orders only differ by a few fields.
Create a Sales Order

Navigate to Sales Order Entry. Menu Path: Sales Management > Order Management > General Operations > Order Entry Tip The CRM menu path is: Customer Relationship Management > Order Management > General Operations > Order Entry 1. From the New menu, select New Order. 2. In the Customer field, search for and select Toronto Tooling. 3. Navigate to the Header > Detail sheet. 4. In the Need By field, select a date two weeks from today's date. 5. In the Ship By field, select a date one week from today's date.
Lock in the Order's Exchange Rate

1. Verify the Currency field displays Canadian Dollar. 2. Select the Lock check box. 3. In the Exchange Rate field, change the exchange rate to 1.08. 4. In the Pack Slip Currency field, select Canadian Dollar. 5. In the Invoice Currency field, select Canadian Dollar. 6. Click Save.
Add a Line to the Sales Order

1. Navigate to the Lines > Detail sheet. 2. From the New menu, select New Line. 3. In the Part/Rev field, enter 4600-1. 4. In the Order Quantity field, enter 1.00.
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5. In the Unit Price field, enter 100.00 and accept all other defaults. 6. Click Save. 7. Navigate to the Summary sheet. 8. From the Sales Order field, note the sales order number __________. 9. Exit Sales Order Entry. If the Order has make direct releases without a job link, return to order? window displays, click No.
Create an Invoice
In this section, verify that an invoice tied to the sales order created in a previous workshop pulls in the locked exchange rate. Navigate to AR Invoice Entry. Menu Path: Financial Management > Accounts Receivable > General Operations > Invoice Entry 1. From the New menu, select New Group. 2. In the Group field, enter XXX (where XXX are your initials). 3. Click Save. 4. From the New menu, select New Miscellaneous Invoice. The Header > Detail sheet displays. 5. In the Sales Order field, enter the sales order number created in a prior workshop task and press Tab. 6. Click Save.
Add an Invoice Line and Verify the Exchange Rate

1. From the New menu, select New Line. The Lines > Detail sheet displays. 2. In the SO Line/Rel field, search for and select the sales order line and release created in a previous workshop task. 3. Navigate to the Header > Detail sheet. 4. From the Invoice field, note the invoice number __________. 5. On the Header > Detail sheet, verify the $ -> CAD field populates with 1.08 (the rate on the locked sales order) and click Save. 6. From the Actions menu, select Group > Post. The AR Invoice Post Process window displays. 7. Click Submit.
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8. Close the AR Invoice Post Process window and exit AR Invoice Entry.
Update Currency Exchange Rates

Many times, a change in the exchange rate occurs between the time a transaction is created and the time it is processed. Examples include invoices, sales orders, and purchase orders. Menu Path: Financial Management > Currency Management > General Operations > Exchange Rate Entry This section allows you to witness changes made to existing exchange rate records. A revaluation process is run to update the rates of previously created documents. Without this significant change in rate between the creation of documents and the currency revaluation process, evidence of a revaluation generation is difficult to perceive.
Workshop - Update an Exchange Rate

Your company has just received a fax from American Bank and Trust which states that the exchange rate between the USD and the XXX-Imaginary Dollar (where XXX are your initials) currency changed from .050000 to 1.150000. This change also affects the exchange rate between the Canadian dollar (CAD) and the XXX-Imaginary Dollar (where XXX are your initials). Navigate to Exchange Rate Entry. Menu Path: Financial Management > Currency Management > General Operations > Exchange Rate Entry Important Due to the logic of Exchange Rate Entry, only one person at a time can update the same rate type record. When working in a shared database, you must take turns completing this workshop. 1. In the Rate Type field, search for and select Main Rate Type. 2. In the Effective Date field, select today's date and press Tab. 3. In the tree view, expand Exchange Rate. 4. In the tree view, select Effective Date : MM/DD/YYYY Currencies : USD-XXX (where MM/DD/YYYY is today's date and XXX are your initials). 5. In the Rate Value field, enter 1.150000 and click Save. 6. In the tree view, select Effective Date : MM/DD/YYYY Currencies : CAD-XXX (where MM/DD/YYYY is today's date and XXX are your initials). 7. In the Rate Value field, enter 1.208270. 8. Click Save and exit Exchange Rate Entry.
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Currency Revaluation Process

Use the Currency Revaluation Process to adjust the amounts on selected records using active exchange rates and post and reverse unrealized gains and losses. You also use this program to generate the Currency Revaluation Report to display a preview of the revalued amounts. Menu Path: Financial Management > Currency Management > General Operations > Currency Revaluation Process When you run this process or report, you can define which records you wish to revalue. You can select all or some sales orders, purchase orders, AP invoices, AR invoices, bank balances, and promissory notes. The amounts on each record are revalued based on the active exchange rate for the currency selected on each record. You also select which currencies to use during the revaluation process. You can run the process against one or multiple currencies. Any unrealized gains and losses that occur from the revaluation are automatically posted to the accounts of each reporting currency and then automatically reversed the following day. Each currency master record has a GL Control. The GL Control has the following accounts attached to it: Realized Gain Realized Loss Unrealized Gain Unrealized Loss When the positive amount is booked as debit, a positive revaluation amount is described as gain, while a negative revaluation amount is described as loss (for example, an AR invoice). In the opposite case, when a positive amount is booked as credit, it is described as loss, while a negative revaluation is described as gain (for example, an AP invoice). Gain amounts are always recorded as credits, while loss amounts are always recorded as debits. The process revalues all open records that do not have a locked exchange rate. An open record is defined as one with a remaining balance that does not equal zero and additional financial transactions are expected against the record. The revalued gains and losses are not considered final. A closed record, however, has a remaining balance that equals zero and no further financial transactions are expected against the record. The revalued gains and losses are considered final and realized by the application. To verify that you want to revalue current transactions through this process, first run the Currency Revaluation Report. This report displays the impact the revaluation has on transactions that use the selected currency or currencies. Review this report before you commit your open transactions to the revaluation.
Generate Currency Revaluation Report

The Currency Revaluation Process allows you to generate a currency revaluation report. Menu Path: Financial Management > Currency Management > General Operations > Currency Revaluation Process This report: Gives you a chance to preview the impact the Currency Revaluation Process will have on your company's bank balances and open transactions. Clearly illustrates the changes the revaluation process will make to the company before any transactions commit those changes.
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Workshop - Generate the Currency Revaluation Report

Navigate to Currency Revaluation Process. Menu Path: Financial Management > Currency Management > General Operations > Currency Revaluation Process Note Today's date defaults into the Revalue Date field. This date can be changed if necessary. This is the date the application uses to report any currency gains or losses that post when the revaluation is processed. 1. Verify the Report Only check box is selected. This setting allows the report to run without posting any currency gains or losses to the general ledger (GL). 2. Click the Currencies button. 3. Click Search. You are searching for currencies on which you would like to report. 4. In the Search window, hold down the Control key, select the XXX-Imaginary Dollar (where XXX are your initials), the Canadian Dollar, and the United States Dollar. 5. Click OK. 6. Select the A/R Invoices, A/P Invoices, Sales Orders, and Purchase Orders check boxes. 7. Click Print Preview. 8. Review and close the report. There is no information on this report that refers to the sales order and invoice posted for Toronto Tooling with the locked exchange rate. 9. Remain in Currency Revaluation Process for the next workshop.
Currency Revaluation Process

The Currency Revaluation Process: Allows you to adjust or revalue exchange rates on unlocked and open transactions. These transactions include: Sales orders Purchase orders AP invoices AR invoices Bank balances that use one of the revaluation process' selected currencies Promissory notes Does not revalue locked or closed transactions. Automatically posts any unrealized gains and losses that occur from the revaluation to the proper currency's assigned GL controls, and then reverses the transaction the following day.
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The amounts on each record are revalued based on the active exchange rate for the currency selected on each record. You also select which currencies to use during the revaluation process. You can run the process against one or multiple currencies. Note that the amount in the original currency that will be revalued is not the original amount on the record. Instead, only the remaining balance, such as a payment or cash receipt amount, is revalued through this process.
Workshop - Process a Currency Revaluation

In this workshop, revalue open and unlocked foreign currency orders and invoices. Maximize Currency Revaluation Process. Menu Path: Financial Management > Currency Management > General Operations > Currency Revaluation Process Important Due to the logic of the Currency Revaluation, only one person at a time can process a currency revaluation. When working in a shared database, you must take turns completing this workshop. Process results may vary. 1. Clear the Report Only check box. This action activates the Revalue button located at the bottom of the window. 2. In the Revaluation Journal field, select Adjustments Journal. 3. Click the Revalue button. 4. In the Currency Revaluation Process window, click Yes. This action validates that a revaluation has been requested and the application is now able to process and post any currency gains and losses to the general ledger. 5. In the Information message, click OK. 6. Exit Currency Revaluation Process.
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Workshop - Review Locked Sales Order for Rate Changes

In this workshop, review the locked sales order for rate changes. Navigate to Sales Order Entry. Menu Path: Sales Management > Order Management > General Operations > Order Entry Tip The CRM menu path is: Customer Relationship Management > Order Management > General Operations > Order Entry 1. In the Sales Order field, enter the sales order number you created in the Workshop - Create an Order, Lock Exchange Rate, and Invoice. 2. Navigate to the Header > Detail sheet. 3. In the Exchange Rate field, verify the exchange rate is still locked, even after the revaluation. 4. Exit Sales Order Entry. You can now optionally go back to the sales order record and clear the Lock check box, run the Currency Revaluation Process again, and then check the sales order.
GL Currency Revaluation Process

Use the GL Currency Revaluation process to update all or specific general ledger accounts with recalculated amounts. The recalculated amounts are generated by changes in currency exchange rates. Menu Path: Financial Management > Currency Management > General Operations > G/L Currency Revaluation This revaluation process can be run for each GL book set up within your company; it updates the Chart of Account settings defined for the book. Any accounts which contain actual values are evaluated through this process, and any account which contains amounts in a different currency are selected by the process for revaluation. You first indicate which GL book, fiscal year, and period will be updated. You can then limit the process to update one or multiple currencies and accounts. Note that only natural accounts are updated through the GL Currency Revaluation process. You have the option to revalue amounts through a reverse journal. You can also post the actual amounts to an accrual account instead of the base account. Because this is a process, you can set up this program to run on a recurring, automatic schedule. This ensures that your general ledger is up to date with the correct amounts for all active currencies used by your company. Revaluation Gains and Losses Gains and losses generated by the GL currency revaluation are considered either realized or unrealized. Usually gains and losses are recognized as realized when the transaction is either fully or partially complete (settled). In some cases; however, a transaction is only considered realized when a transaction is fully complete. When gains and losses are considered unrealized, the transaction either is not started or is partially complete (not settled). These transactions typically need to be reversed at some point. When these amounts are reversed, they are changed immediately, and both the direct and the reversal revaluation are created at the same time. The appropriate audit records are also created. Balances; however, are not affected by the reversed amounts. When the positive amount is booked as debit, a positive revaluation amount is considered gain, while a negative revaluation amount is considered loss (for example, an AR invoice). In the opposite case, when a positive amount
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is booked as credit, it is considered loss, while a negative revaluation is considered gain (for example, an AP invoice). Gain amounts are always recorded as credits, while loss amounts are always recorded as debits. The gain or loss difference is calculated using the currencies and rate types involved in the transaction. Each currency master record has a GL Control with the following accounts attached: Realized Gain Realized Loss Unrealized Gain Unrealized Loss These accounts are updated through this process. The balances that result from the revaluation are stored within these accounts. The revaluation results are then submitted to the posting engine using a general journal in single book mode.
Non-Base Currency Payments and Cash Receipts

This portion of the course illustrates the payment process involved when posting supplier payments and customer cash receipts. The orders and invoices created in prior workshops are paid in the workshops included in this section. Only the minimum amount of fields needed to demonstrate paying a foreign supplier and posting a foreign customer's cash receipts are discussed in this section of the course. While there are many fields within these programs, non-base currency payments and cash receipts only differ by a couple of fields. These fields are covered in Application Help.
Workshop - Pay a Supplier in a Foreign Currency

Complete the steps below to pay the Advanced Bill Invoice created in a prior workshop for the supplier. An AP payment must be posted in the same currency in which it was invoiced. In this workshop, you will not print or post the payment. The workshop is used only to display that the invoice total was revalued when the Currency Revaluation was generated during the Workshop - Process a Currency Revaluation. For more information on entering, printing, and posting payments, refer to the Application Help.
Add a Payment Entry Group

Navigate to AP Payment Entry. Menu Path: Financial Management > Accounts Payable > General Operations > Payment Entry 1. From the New menu, select New Group. 2. In the Group field, enter XXX (where XXX are your initials). 3. In the Bank Account field, select Main Checking Account. 4. Accept all other default values. 5. Click Save.
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Update the Payment Currency and Select an Invoice to Pay

1. From the Actions menu, select New Payment. The Payment > Header sheet displays. 2. In the Supplier field, enter GLOBE. 3. In the Currency field, select XXX-Imaginary Dollars (where XXX are your initials). 4. Click Save. 5. From the New menu, select New Invoice Payment. 6. Navigate to the Payment > Invoice Detail > Detail sheet. 7. In the Invoice field, search for and select invoice XXX-1 (where XXX are your initials).
Verify the Exchange Rate Revaluation

1. Navigate to the Payment > Header sheet. 2. View the Currency and Exchange Rate fields. The exchange rate is .869565 XXX --> $ (where XXX are your initials). This is the same as 1.15 $ --> XXX (where XXX are your initials). The invoice was revalued from 100.00 USD to 42.61 USD. 3. Click Save and exit AP Payment Entry.
Workshop - Record a Foreign Currency Cash Receipt

Complete the steps below to enter a cash receipt from the customer, Barriston Engineering. This cash receipt is for the miscellaneous invoice created in the Workshop - Create a Miscellaneous Invoice. In this workshop you will not post this cash receipt. The workshop is only used to display that the invoice you are posting cash against was revalued when the Currency Revaluation was generated. For more information on Cash Receipts, refer to the Application Help.
Add a Cash Receipt Entry Group

Navigate to Cash Receipt Entry. Menu Path: Financial Management > Accounts Receivable > General Operations > Cash Receipt Entry 1. From the New menu, select New Group. 2. In the Group field, enter XXX (where XXX are your initials). 3. In the Bank Account field, select Main Checking Account. 4. Accept the default values in the remaining fields. 5. Click Save.
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Create an Invoice Payment

1. From the New menu, select New Invoice Payment. 2. In the Check field, enter XXX123 (where XXX are yoru initials). 3. In the Receipt Amount field, enter 100.00. 4. In the Receipt Currency field, select XXX-Imaginary Dollars (where XXX are yoru initials) to illustrate that the amount received was in the customer's currency. 5. In the Cust ID field, enter Barriston. 6. Click Save.
Select the Invoice to Pay

1. Navigate to the A/R Receipt > Invoice Selection sheet and highlight the invoice posted in the Workshop - Create a Miscellaneous Invoice. 2. Click the Apply without Discount button. The AR Receipt > Allocate sheet displays.
Verify the Currency and Exchange Rate are Correct

1. Navigate to the AR Receipt > Header Currency sheet. 2. In the Receipt Currency field, view the currency for this receipt. 3. In the XXX-> USD field (where XXX are your initials), view the exchange rate for this receipt. The exchange rate is .869565 XXX -> USD (which is the same as 1.15 USD -> XXX). This was revalued from the invoice's original exchange rate which was 2.0000 XXX -> USD (or .50000 USD -> XXX). In this step, XXX represents your initials. 4. Remain in this group in Cash Receipt Entry for the next workshop.
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Workshop - Apply Cash in a Different Currency

In this workshop, apply cash to an invoice in a currency that differs from the invoice currency and the base currency. In this workshop you will not print or post this cash receipt. The workshop is only used to display that it is possible to post a cash receipt against an invoice in a currency that differs from the invoice currency and the base currency. Important Due to necessary database setup and specific data used to create this invoice payment, this workshop can only be performed by one person on a shared database. 1. From the New menu, select New Invoice Payment. 2. Navigate to the A/R Receipt > Header sheet. 3. In the Check field, enter XXX345 (where XXX are your initials). 4. In the Receipt Amount field, enter 100.00. 5. In the Receipt Currency field, select XXX-Imaginary Dollars. This is the currency in which you received the payment. 6. In the Settlement Currency field, select Canadian Dollar. This is the currency in which the customer was invoiced. 7. In the Cust ID field, enter Toronto. 8. Click Save. 9. Navigate to the A/R Receipt > Invoice Selection sheet. 10. Select the invoice you created in the Workshop - Create an Order, Lock the Exchange Rate, and Invoice. 11. Click the Apply without Discount button. 12. Navigate to the A/R Receipt > Header Currency sheet. 13. Review the currency calculations. 14. Navigate to the A/R Receipt > Detail sheet. 15. Review the settlement calculations. Note that the invoice rate is 1.08. This is the rate you previously locked on the invoice's order. Also note that the Bank Amount (Base Amount), Settlement Amount, and Receipt Amount are all different as they are all in different currencies. 16. Exit Cash Receipts Entry.
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Conclusion
Conclusion
Congratulations! You have completed the Currency Management course. Please take a moment to let Epicor University know how to serve you better by completing an evaluation at htt p://www.keysurvey.com/survey/379199/e92f/. Your feedback provides the guidelines for the future direction of Epicor University offerings.
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Index
Index
C
currency master maintenance 11
E
exchange rate entry 16
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Additional information is available at the Education and Documentation areas of the EPICweb Customer Portal. To access this site, you need a Site ID and an EPICweb account. To create an account, go to http://support.epicor.com.

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Epicor ERP Currency Management Course

Currency Management Course

Overview.................................................................................................................................8 Application Setup...................................................................................................................9

Daily Currency Processing....................................................................................................21

Epicor ERP | 9.05.607

Currency Management Course

Epicor ERP | 9.05.607

Currency Management Course

Currency Management Course

Currency Management Course

Epicor ERP | 9.05.607

Before You Begin

Currency Management Course

Before You Begin

Epicor ERP | 9.05.607

Currency Management Course

Before You Begin

Epicor ERP | 9.05.607

Currency Management Course

Epicor ERP | 9.05.607

Currency Management Course

Epicor ERP | 9.05.607

Currency Management Course

Epicor ERP | 9.05.607

Currency Management Course

Currency Master Maintenance

Epicor ERP | 9.05.607

Currency Management Course

Workshop - Create a Currency Code

Epicor ERP | 9.05.607

Currency Management Course

Reporting Currency Actions

Workshop - Add a Reporting Currency

Epicor ERP | 9.05.607

Currency Management Course

Rate Type Maintenance

Epicor ERP | 9.05.607

Currency Management Course

Workshop - Update a Rate Type

Epicor ERP | 9.05.607

Currency Management Course

Exchange Rate Entry

Epicor ERP | 9.05.607

Currency Management Course

Workshop - Enter Exchange Rates

Workshop - Activate Currency

Epicor ERP | 9.05.607

Currency Management Course

Workshop - Create a Country Record

Customer and Supplier Maintenance

Epicor ERP | 9.05.607

Currency Management Course

Workshop - Update a Customer Country and Currency

Workshop - Update a Supplier Country and Currency

Epicor ERP | 9.05.607

Currency Management Course

Epicor ERP | 9.05.607

Currency Management Course

Daily Currency Processing

Daily Currency Processing

Buy and Sell Products in Foreign Currencies

Epicor ERP | 9.05.607

Daily Currency Processing