Sage 200 can hold up to 100 currencies. One currency is your base currency and the remaining 99 can be used for the foreign currencies in which your suppliers and customers operate.
How foreign currency transactions are posted
You enter foreign currency transactions in the same way as your base currency transactions. You can enter sales and purchase transactions in foreign currencies through the sales and purchase ledgers, and through the cash book.
The balance and turnover of all foreign currency supplier and customer accounts is maintained in the appropriate ledger for both the operating currency and your base currency.
Postings to your Nominal Ledger are always in your base currency. To convert foreign currency transactions to your base currency Sage 200 uses either the exchange rate held for the currency, or an exchange rate provided when a transaction is posted.
The impact of exchange rate fluctuations
Changes to exchange rates can affect the value of transactions between when an invoice is placed and when it is paid. To cater for this Sage 200 revalues transactions when they are allocated (both part or fully) to an invoice.
You can also revalue the balance of foreign currency bank accounts you hold as well as customer and supplier balances to reflect the current value of those balances. When you perform a revaluation the following nominal account balances are updated:
- Foreign bank account:
- The nominal account linked to the foreign bank.
- Exchange Differences.
- Customer balance:
- Debtors Control.
- Exchange Differences.
- Supplier balance:
- Creditors Control.
- Exchange Differences.
Setting up your foreign currencies
If you have customers or suppliers who want to conduct their business with you in foreign currencies you must perform some initial setup before you can begin to work with them:
- Create currencies and set their exchange rates.
- Create foreign currency bank accounts you operate and the nominal account(s) into which they will post.
- Create customer and supplier records.
Working with foreign currencies
When you have your currencies, customer and supplier records available you can begin to process transactions and work with foreign currency accounts. You will:
- Keep the exchange rates up-to-date on your system.
- Place and pay for orders placed with foreign suppliers.
- Raise invoices and input receipts from foreign customers.
- Revalue your foreign bank accounts, supplier account balances and customer account balances so their balances reflect their true value.