Setting up a Currency.
Currencies are managed in System Setup > Finance > Manage Currencies
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Click Setup Currencies to add new ones and manage existing ones.
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Click Add at the top of the page to add a new currency
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Select the currency option from the dropdown
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Enter the General Rate (cost to purchase £1.00)
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If required, enter a sales rate and purchase rate
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Click Save at the top of the page.
On the currencies page, you can also update exchange rates, which will update all exchange rates held in the system using the current exchange ranges held at the European Central Bank.
Afer amending a currency exchange rate, you can click 'Revalue debtors/creditors...' to revalue them to be in line with the new exchange rate. Any differences will be posted to the exchange rate variance nominal.
Additional Info.
FuseMetrix accounts module supports multiple exchange rates: a general rate, a sales rate and a purchase rate.
The system requires only a general rate to be set in order to work, however, many companies elect to set a rate used internally when invoicing clients (sales rate) and a different rate to be set when receiving invoices from supplier (purchase rate).
Using this mechanism reduces the likelihood of an overly positive report of the transaction being shown in the accounts system by allowing for exchange rate fluctuations. Exchange rate fluctuations are then corrected by posting journals for the difference between the sales or purchases rate and the actual rate shown on your bank statement at the time the money actually arrives or leaves your bank account.
If specified, the sales rate will be used when raising sales invoices and the purchase rate will be used when entering purchase invoices.
It can be useful to set a slightly higher sales rate and a slightly lower purchase rate in order to ‘play it safe’ with real world fluctuating rates.
