To use foreign currencies in your business you need set up the following:
- The currencies you trade in and exchange rate for each one.
-
Your foreign currency bank accounts if you use them and their linked nominal accounts.
This is not mandatory as you can post foreign currency transactions to a base currency bank account.
If you do have foreign currency bank accounts, you'll need to set these up in Sage 200. We recommend that you link each one to separate a nominal account. This makes it easier for you to keep track of your bank accounts balances.
- Supplier and customer accounts in the currency in which the applicable organisation trades.
John's company is to use a new supplier who operates in the Euro. The company decides to open a Euro bank account in order to pay the supplier in Euros.
To support this John must:
- Add the Euro currency to Sage 200.
- Enter the current Euro exchange rate.
- Create a new nominal accounts for the new bank account. The new nominal accounts are:
- Bank account
- Bank charges
- Exchange differences
You can set up new nominal accounts or link existing nominal accounts to a new bank account. For information about these nominal accounts, see Set up your bank accounts.
- Add the details of the company's new Euro bank account.
- Create the new supplier account and set its currency to Euro.
Once these records have been set up John's company can begin trading with the supplier. For information about the purchasing process, see Introduction to purchases and suppliers.
What do you want to do?
Add a foreign bank account to your system
Add foreign customer or supplier accounts
Next steps
After performing the set up described above you can maintain the exchange rates on your currencies, process foreign purchases and sales, and revalue your foreign bank accounts, supplier and customer accounts.
Steps in this task
Revalue a foreign currency bank account
Operating with foreign currencies
Manage currencies and exchange rates
Other useful information