Currency Balance Accounting—Key Exercises

IMPORTANT
It is extremely important that you set up and work within your own company to maintain your data integrity. If you work within any other company, your exercises will not function as intended and the data of other students might be affected. Predictable exercise results require that your data be isolated in your own company.

Basic Data Setup

Define Code Part Function

Purpose: The purpose of this exercise is to define a code part for the Currency Balance function. At least one code part must be defined for this function before you use Currency Balance Accounting.

Windows:
Define Code String

  1. Find the code parts.
  2. Optionally, enter a name in the Internal Name field for the code part that will be used for currency balance accounting.
  3. Verify that the value in the Code Used field is Yes.
  4. In the Code Part Function list, click Curr Balance.
  5. Optionally, specify a name in the Description field.
  6. Save your changes.

Enter Currency Codes for Code Part

Purpose: The purpose of this exercise is to show you how to enter the currency codes that should be valid for currency balance accounting.

Windows:
Code Part Values

  1. Click the tab for the code part that is used for currency balance accounting.
  2. Create a new record, and enter the currency code.
  3. Enter the interval for when the currency code is valid.
  4. Save your changes.

Define Currency Balance Account

Purpose: The purpose of this exercise is to show you how to define an existing account to be used for currency balance accounting.

Windows:
Account

  1. Search for an existing account in your company that you want to use for currency balance accounting.
  2. Under Options, select the Currency Balance check box.
  3. Save your changes.

Note: Currency balance accounting can be used on an existing account only if the account has no balances in the general ledger.

Enter Account for Currency Balance Accounting

Purpose: The purpose of this exercise is to show you how to enter a new account for currency balance accounting.

Windows:
Account

  1. Create a new record, and enter the information for the account.
  2. Under Options, select the Currency Balance check box.
  3. Save your changes.

Note: The code part demands must be blocked for the code part that is specified for the currency accounting.

Required Data

Currency Rates.

Main Exercises

The currency balance accounting process means that the original transaction currency is stored at the balance level in the general ledger. This enables you to retrieve a balance in the accounting currency and the corresponding value in the required currency, for example for customer claims in different currencies. One of the code parts in the code string is used for storing the currency codes.

Enter Voucher Using Currency Balance Account

Enter Vouchers

Purpose: The purpose of this exercise is to show you how to enter manual voucher rows when a currency balance account and transaction currencies that are different from the accounting currency are being used.

Windows:
Voucher Entry

  1. Enter a manual voucher and use the account that you have specified as a currency balance account in the Basic Data Setup exercise. Include an amount in the foreign currency, e.g., DEM.

  2. Enter another voucher including an amount in the same foreign currency. Change the rate in the Currency Rate field.

Note:Currency Rates.

Update Vouchers

Update Vouchers to General Ledger

Purpose: The purpose of this exercise is to show you how to update vouchers to  the general ledger.

Windows:
Update GL Vouchers
Voucher Entry
GL Update History

  1. Open the Update GL Vouchers window. Alternatively, open the Voucher Entry window, right-click, and then click Instant Update General Ledger.
  2. Click OK to start the updating routine.
  3. Once the updating routine is complete, open the GL Update History window. Verify that the updating routine has been completed for all vouchers.

Queries

Queries in General Ledger

Purpose: The purpose of this exercise is to show you how to view balances in queries and reports in both the accounting currency and foreign currencies.

Windows:
GL Balance Analysis
GL Voucher Details Analysis

  1. Open the GL Balance Analysis window, and find information on the currency balance accounting. For example, query for the year, period, and code part used for currency balance accounting. Also, specify a code part value such as DEM. The balance is displayed in both accounting currency and the selected code part value.

  2. Open the GL Voucher Details Analysis window. Find the vouchers. Note that the value in the Currency Accounting field is Yes for the account used for currency balance accounting.