How to Manage Multi-Currency RequirementsMake sure you are using the right software to support your multi-currency operations.
As businesses grow, they become more complex. Operating across different countries is one of the signs that you are outgrowing your small-business accounting software. Different countries bring different currencies, and different currencies add additional complexity to your finances – complexities that run-of-the-mill accounting systems struggle to handle.
Some of the fundamental needs that come with operating across different countries include:
- Being able to convert foreign currencies to local currencies,
- Using one currency for consolidated reporting,
- Maintaining compliance in when trading in each country, and
- Ongoing changes to your system’s exchange rates, as the currency value fluctuates.
Multi-currency and foreign currency support in MYOB’s Enterprise Solutions
The purpose of multi-currency is to allow users to store Debtors, Creditors and Balance Sheet accounts in a currency other than the default currency. These transactions are then converted into the default currency for posting to the General Ledger. Both MYOB Advanced and MYOB Exo can convert these transactions into a default currency. Variances in exchange rates are accommodated within the General Ledger to balance the changes in the debtor and creditor control accounts.
When using the integrated cash book, realised gains or losses will only be posted to the General Ledger after the invoices and corresponding payments have been allocated.
Customers and suppliers can be set up in any currency and any transaction that takes place is recorded in the customer or suppliers’ currency. Sales reports and stock movements convert to local currency at the same rate as the transaction – so everything is balanced automatically.
MYOB Advanced and MYOB Exo can also calculate the hidden costs that need to be paid before goods can be delivered to you, whether it is shipping, handling, import fees, duty, local and domestic freight, or customs inspections. These are spread over the shipment, calculated on value, volume, weight, or quantity. At the touch of a button, you will know the true landed cost of an item, as well as the true profitability when you come to sell it.
MYOB Advanced and MYOB Exo convert and record landed costs incurred from international suppliers in any currency with automatic conversion to your base currency. When this is performed automatically by your system, it removes the stress of capturing and calculating these costs manually and ensures that your margins are maintained.
MYOB Advanced: Enhanced Support of Multiple Base Currencies
In previous versions of MYOB Advanced, if a company was set up with a different base company to that of the parent company, it had to be created in a separate tenant. This made it difficult to maintain different lists of items, difficult to manage approvals and it was impossible to have joint projects that involved the employees of multiple companies.
With the release of the 2021 mid-year update for MYOB Advanced, you can now assign different base currencies to companies under the same tenant. This makes it easier to access information and collaborate across companies and process documents in different base currencies.
If companies within the same tenant share inventory item records, then users can perform the following operations:
- Upload a list of non-stock items with the default prices in a specific currency; this list will be valid for the companies with this base currency
- Maintain the standard cost of the non-stock items that are valid for a specific base currency
- Review and edit the default prices in the currency of the current branch
- Maintain the Manufacturer’s Suggested Retail Price (MSRP) for the products in different currencies that will be used by the companies with these base currencies
Multiple Stock Locations
If your company is dealing with multiple currencies, you may also have multiple stock locations. It is crucial to have a system in place to display a single view of your inventory. This will help manage to reduce manual processes and guarantee customer satisfaction. Read more here about how the right software can give you accurate stock information in a single view.
How do I get MYOB Advanced or MYOB Exo up and running?
MYOB Advanced Business and MYOB Exo Business differ from entry level software and can fulfil your complex requirements (such as multi-currency and multi-stock locations). If you have outgrown your simple, off-the-shelf accounting software then it is time to upgrade.
Organisations looking to make this transition will also be feeling pain in other areas of their operation such as:
- A lack of visibility of their entire operations, with siloed data stored across different databases and spreadsheets
- Slow and tedious manual tasks, that prevent employees from being able to focus on their primary roles,
- Slow reporting times, never seeing an up-to-date picture of your business’ situation
- Limited control over individual accessibility, visibility, and security with limited auditability and compliance attributes of the current system,
- An inability to properly integrate add-on products into the core system, relying in manual duplication of data across disparate systems, leading to errors and inefficiencies.
Where to from here?
Managing different currencies in your business doesn’t have to be stressful. The right software can save you time and money and help you keep accurate records.
For these more complex systems you will need to find the right implementation partner to guide you through the transition process. Kilimanjaro Consulting is MYOB’s number one partner across Australia and New Zealand. We have developed a comprehensive and unique methodology that ensures a low-risk implementation. We make sure that you are completely satisfied before you go live. We pride ourselves on understanding your organisation, partnering with you as you grow, and becoming your trusted advisors.
If you would like to talk to our friendly and experienced team, or to book in a consultation to discuss your requirements, click here. You can also email us at firstname.lastname@example.org or call 1300 857 464 (AU) or 0800 436 774 (NZ).