Multicurrency Setup GP Dynamics: Designing Your Financial Framework

Step 1: Designing Your Financial Framework – Part III Multicurrency Setup GP

In this section we’ll cover the following:

  • Currency Access
  • Functional Currency
  • Transaction Rate Types

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.

Dynamics GP can track as many different currencies as you’d like. Let’s define a few things here:

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: Microsoft Dynamics GP >> Tools >> Setup >> System >> Multicurrency Access