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EDE8917905 90521-905-9228-583607 9.05.607 Revision: September 06, 2011 5:59 p.m. Total pages: 41 course.ditaval
Contents
Contents
Currency Management Course..............................................................................................5 Before You Begin....................................................................................................................6
Audience.........................................................................................................................................................6 Prerequisites....................................................................................................................................................6 Environment Setup..........................................................................................................................................7 Workshop Constraints..............................................................................................................................7
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
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.
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.
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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
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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.
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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.
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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.
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
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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.
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Application Setup
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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.
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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.
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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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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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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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7. Click Save.
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3. Click Save. 4. Navigate to the Group > Detail sheet and review the data populating the Invoices grid.
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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.
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8. Close the AR Invoice Post Process window and exit AR Invoice Entry.
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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.
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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.
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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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