Whether you’re going to use multiple currencies in your system or not, you’re going to want to do a minimum amount of setup to ensure that Dynamics GP works smoothly for you.
In this section we’ll cover the following:
- Currency Access
- Functional Currency
- Transaction Rate Types
Dynamics GP can track as many different currencies as you’d like. Let’s define a few things:
- Functional Currency– The primary currency that your company uses for maintaining accounting records. Typically, the functional currency is the currency for the country/region where your company is located.
- Reporting Currency– Used to convert functional currency amounts to another currency on inquiries and reports. For a subsidiary, the reporting currency typically is the functional currency of the parent company. You can change the reporting currency at any time.
- Originating Currency– The currency of a specific transaction recorded by your company. This may be the same as the Functional Currency, or different. If the Originating Currency of a specific transaction is not your Functional Currency, Dynamics GP can record and track the foreign exchange rate and revalue balance sheet items denominated in foreign currencies on a periodic basis.
The basic multicurrency setup that you’ll need to do is as follows:
Because there a several different currencies that are routinely added to your Dynamics GP system when it is initiated, you will want to grant access to at least the US Dollar for your company. To do so, navigate to the Multicurrency Access screen: Administration>> Setup >> System >> Multicurrency Access
Select the US Dollar (denoted as Z-US$) and make sure that the Access check box next to your company name is selected.
The next step is to complete the setup required for the general ledger. To go to the Multicurrency Setup screen, navigate as follows: Microsoft Dynamics GP >> Tools >> Setup >> Company >> Multicurrency Setup.
Select Z-US$ as the Functional Currency and the Reporting Currency.
Select AVERAGE as the Default Transaction Rate Types for Financial, Sales, and Purchasing series.
That’s it. You’re done. Unless you plan on recording and tracking foreign currency transactions in your system, you will not have to do any additional currency related setup.
Take a look at this video to see this in action: Multicurrency Setup
Next we’ll look at basic navigation and some key system features that’ll make Dynamics GP easy to use.