Payables Options - Currency

Use Multiple Currencies

Enable this option if you want to enter and pay invoices in a currency different from your ledger currency. Payables also allows you to define a multiple currency payment format and bank account if you enable this option.

If you update this Payables option from enabled to disabled, Payables checks and warns you if you have any multiple currency bank accounts that are using multiple currency payment formats. You must inactivate the payment documents that use multiple currency payment formats and change the Multiple Currency field value on multiple currency bank accounts to disabled before you can change this Payables option from enabled to disabled.


Require Exchange Rate Entry

Enable this option to require entry of an exchange rate whenever you enter an invoice or a payment in a currency other than your ledger currency or an associated fixed rate currency. If you maintain daily rates in the Daily Rates window, Payables defaults the rate automatically, based on the date and the Rate type you enter. If the exchange rate type is User, then Payables always requires an exchange rate, either entered by the user or calculated by the system.

You cannot create accounting entries for or pay foreign currency invoices without exchange rates. After you have entered invoices or created payments, you can enter exchange rates, either manually, or by using the AutoRate program.

When you create bills payable, you are required to enter the Maturity Rate, Maturity Rate Type, and Maturity Rate Date.


Calculate User Exchange Rate

If you already know the ledger currency amounts of any foreign currency invoices you are entering, then you can enable this option so Payables can calculate and enter effective invoice exchange rates for those invoices.

This functionality applies to invoices you enter in the Invoices window and invoices you import from the Payables Open Interface Import program. If this option is enabled, then when you enter a foreign currency invoice, if you select the exchange rate type of User and you provide the ledger currency amount, then Payables calculates and enters the exchange rate.

Payables allows you to enter a value for ledger currency amount in the Invoices window only if this option is enabled.

If this option is enabled then when you enter a foreign currency invoice, you still have the option of entering a foreign currency invoice amount and exchange rate so Payables will calculate and enter the ledger currency amount.


Use Invoice Exchange Rate on Prepaid Expense for Tax

This checkbox is not selected by default. If you select this option, then on prepayment the functional amount for tax associated with Prepayment is calculated using the exchange rate specified on the Standard Invoice. If this option is not selected, then on prepayment the functional amount for tax associated with Prepayment is calculated using the exchange rate specified on the Prepayment Invoice. If you change the option at any time, the prepayemnts already applied are not impacted.

Exchange Rate Type

Payables uses this as the default exchange rate type when you enter invoices or create payments. 

Realized Gain/Loss GL Accounts 

Payables uses these accounts as the default realized gain and loss accounts for payments from each of your bank accounts. If the exchange rate changes between invoice entry and payment, Payables automatically calculates the realized gain or loss and records it in this account. Payables records gains and losses only if you use accrual basis accounting. The Account for Gain/Loss Payables option controls when Payables accounts for gains and losses.

Rounding GL Account

Payables uses this account for currency rounding at the following times:

• You use multiple currencies and the payment currency does not round within the payment currency precision. For example, if a payment rounds to 100.001 GBP, the payment will be for 100.00 GBP, and the rounding error of .001 will be recorded in this account.

• The ledger currency amounts of payments do not equal the amount recorded as the liability. The system charges the remaining amount to the rounding account to fully relieve liability. This happens when you make the final payment of an invoice that is already partially paid.

• You have enabled automatic offsets and the cash account is pooled, and you have rounding errors. The system charges the remaining amount to the rounding account to fully relieve the cash clearing account. This happens when you make the final payment of an invoice that is already partially paid.