About Multiple Currencies for Vendors

Vendors

When you define multiple currencies for a vendor, the currencies can be assigned to transactions that permit a currency other than the vendor default currency, and all outward-facing vendor documents contain the transaction currencies.

Vendor balances and totals are displayed in the vendor default currency, which is specified on the Main tab of the Vendors form. Also, the vendor default currency is used internally when vendor total amounts are needed, and for transactions that are not included in the specified transactions that support other currencies.

Transactions

These are the transaction functions that support a currency other than the vendor default currency:

• Purchase Orders
• History Purchase Orders
• A/P Vouchers and Adjustments
• A/P Voucher Pre-Register
• A/P Recurring Vouchers
• A/P Posted Transactions

Purchase Orders: For purchase order transactions, you can select from all currencies defined as valid for the vendor. The currency is then stored with the transaction. Amounts previously recorded in the vendor default currency are now recorded in the transaction currency, which may be different than the vendor default currency. The exchange rate is stored between transaction currency and domestic currency. Any amounts currently stored in the domestic currency remain in the domestic currency.

All subsequent transactions—for example, a voucher created for a purchase order receipt—use the currency of the originating transaction, such as the purchase order.

A/P Transactions: These include transactions posted from purchasing (A/P vouchers or adjustments) and manual A/P transactions (vouchers and recurring vouchers). Transactions posted from purchasing are created in the transaction currency of the purchase order. The currency of manual A/P transactions and recurring vouchers can be selected from the set of valid currencies defined for the vendor.

Amounts previously recorded in the vendor default currency are now recorded in the transaction currency, which may be different than the vendor default currency. Any amounts currently stored in domestic currency remain in the domestic currency.

Adjustments are defined based on the currency of the associated voucher.

A/P Payments

A/P payments can be made in any currency. The payment currency continues to be equivalent to the bank currency. The vendor default currency is no longer considered for the payment header. Only one exchange rate is stored on the payment header, and it is between the payment (bank) currency and domestic currency.

The journal entries created from posting the A/P payment are from the bank currency to the domestic currency, and the GL Bank record is in the bank currency. The foreign amounts on the payment header store the amounts of the bank currency. A/P payment distributions use the transaction currency. A/P payment distributions convert the transaction currency to the domestic currency; however, the transaction currency may not be the same across vouchers, may not match the default vendor currency, or may not match the payment (bank) currency. If the transaction currency matches the bank currency, then the payment header exchange rate is used (bank to domestic). Otherwise, the current exchange rate between the transaction and domestic currencies is used, with the exception of Fixed Rate transactions. Journal entries are made with the foreign currency = transaction currency along with the domestic currency. The payment posted transactions are in the transaction currency, and the gain/loss calculations continue to function as usual.

A/P Posted Transactions

A/P posted transactions store amounts in the transaction currency, which may be any one of a set of valid currencies set up for the vendor. The exchange rate stores the rate between the transaction currency and the domestic currency.

Notes and Exceptions

Automatic currency rate updates and vendor-specific exchange rates are not included in this feature. Also, only the vendor default currency is supported for:

• Vendor Contracts and Vendor Contract Pricing
• Goods Receiving Note
• EDI transactions
• A/P Payment Distributions of type Non A/P, Commission, and Open Credit
• Purchase Order Builder
• Manual Voucher Builder
• Voucher Builder
• Purchase Order Master Contracts (Automotive)
• Item Price Requests
• Item Price Responses
• Purchase Order Requisitions/Purchase Order Requisition Lines
• Other A/P Transactions not specifically mentioned as supporting a currency other than the vendor default currency

Vendor Letters of Credit and A/P Draft Payments continue to support vendor default currency or domestic currency.

There are no changes to base currency restrictions for Builder functionality.

There are no changes to base currency restrictions for centralized payment processing.

Any cross-site logic processing for vendors requires that vendors have the same default currency.

There is no validation to ensure that currency exchange rates exist between the vendor default currency and any currency that is set up as valid to be used for specific set of transactions for the vendor. These rates must be set up to support system calculation of vendor balances by converting transaction amounts to vendor currency.