Multi-Currency & Multi-Base Tips in Sage Intacct
By: Dean Dorton | April 14, 2020
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Accounting Software | Accounting Software | Sage Intacct
Sage Intacct offers the following options for Multi-Entity, Muti-Currency enabled environments. It’s important to determine which category a client falls under before choosing one over the other.
1. Multi-Currency, SINGLE Base Currency
- Each entity can transact with multiple currencies
- All entities will share a single base currency/reporting currency
2. Multi-Currency, MULTI-Base (functional) Currencies
- Every report will consider the base currencies of the entities in the report
- Keep in mind that with Sage Intacct Global Consolidation, you can only report across entities that have an identical base currency.
- If entities have different base currencies and you want to consolidate/report across entities, may need to purchase multi-currency AND Intacct Global Consolidation.
- IGC requires Multi-Currency (GL Configuration) and Multi-Base (Multi-entity Configuration).
Biggest questions to ask yourself:
1. How many entities? Is there more than one base currency (functional currency) for reporting?
- If no, then probably dealing with a multi-entity, but single base currency setup using multiple currencies in the transactions
- If yes, then you will need to explore further consolidation and reporting needs (potentially Intacct Global consolidation).
2. Even with a single base, we need to know which transactions are done in more than one currency?
- This is a per entity question
- Is setup necessary for both Customers and Vendors?
i. Does client need to receive/pay in foreign currency?
ii. Does client need to invoice/bill in foreign currency?
3. Does client have foreign currency bank accounts?
- If so, how are funds transferred between accounts?
- Which entity owns what bank?
- Are there inter-entity implications here? Changes to inter-entity JEs with multiple bases coming in next release
4. Are there any historical balance sheet accounts where you want the foreign currency to be represented?
- Consideration for Employee Expenses
i. What currencies will be used here?
ii. What currencies will be used for reimbursement?
Terminology to Know
Intacct Daily Rate: This rate is automatically pulled into Intacct from OANDA. There is an option for 1 Day Prior Rate for time zones far removed from UTC -3.
Realized Gain/Loss: Effect of currency fluctuation for settled (closed) transactions. Posted to the P&L and reported in the net income section of a financial report.
Unrealized Gain/Loss: Used for unsettled (open) transactions. Posted to the Balance Sheet and reported in the shareholder equity section of a financial report.
If you would like to learn more about the capabilities of Sage Intacct, visit our Sage Intacct Overview page.
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