Configuring Multi-Currency/Foreign Exchange (FX) Billing (Admin)

In this article:

• How-To Video
• Setting Up Multi-Currency 
• Notes About System Account Configuration
• FAQs

You can configure multi-currency/foreign exchange (or FX) billing within Actionstep. Multi-currency billing allows you to bill a client in a different currency. It works by applying a currency conversion to your base currency.

How-To Video

Setting Up Multi-Currency 

Part 1: Enabling Multi-Currency Banking

1. In Actionstep, go to Admin > Accounting. The Accounting Page appears.
2. Click Edit next to Accounting preferences. The Accounting System Preferences page appears.
3. In the Currency section, toggle Multi currency banking to on.
   
4. Click Save to save your changes. 
5. Proceed to Part 2: Entering Currencies and Exchange Rates.

Part 2: Entering Currencies and Exchange Rates:

1. In Actionstep, go to Admin > Additional Settings. The Additional Settings page appears.
2. Click Edit next to Currencies & Exchange Rates. The Currencies & Exchange Rates page appears. At first, you'll only see your base currency (e.g., USD). 
3. Click Add currency. The Add Currency window appears.
4. Enter the abbreviated Currency code (for example, GBP for the Great British Pound).
5. Enter a Currency name and corresponding Currency symbol.
   
6. Click Save. The currency is added to the list on the Currencies & Exchange Rates page. 
7. In this list, find the currency you just added and click the amount shown in the Exchange Rate column. The Exchange Rates window appears.
8. Click Add row.
9. Enter the Effective Date, the Inverse Rate, and the Information Source. 
10. Repeat this step as many times as needed by clicking Add row again. 
11. Click Save to save your changes. 
12. Proceed to Part 3: Creating or Updating Your Accounts.

Part 3: Creating or Updating Your Accounts

Now that you've entered new currencies and their corresponding exchange rates, you'll need to update your System Accounts and your Accounts List. 

1. In Actionstep, go to Admin > Accounting. The Accounting page appears.
2. Click Edit next to System accounts. The System Accounts page appears.
   
   You'll see there are now several System Account Types that are not linked to any ledger accounts.
   
   
3. Once you've noted which system account types need to be configured, go to your Accounts List and add the general ledger accounts. (Full instructions for creating these accounts can be found in Adding a General Ledger Account.) 
   NOTES: 
   See the next section, Notes About System Account Configuration, for specific notes about configuring foreign exchange accounts.
   
   You'll also need to configure any system account that starts with FX Gain/Loss to a general ledger account.
4. Once you've added the new accounts, navigate back to this System Accounts list in Admin > Accounting > System accounts and click the Not configured link for the account.
5. Select the newly created corresponding ledger account.
6. Repeat this process for each account.
7. Go to Admin > Billing. The Billing page appears.
8. In the FX Billing section, toggle Enable to on. The New Default Conversion Rate window appears.
9. Enter a Currency code and Default conversion rate. This is your default conversion rate, but you can select different ones for individual matters.
10. Click Save to save your changes and, if needed, click Save again.
    
    

Notes About System Account Configuration 

Please note the following when configuring your system accounts:

• The table below explains which system accounts must be created for your system to work with a bank account in more than one currency. Some of the system accounts can be created and linked to existing accounts in your chart of accounts but many will require you to create new accounts in your chart of accounts so that a system account can be mapped to it. 
• Some of these system accounts will already exist in the system under your base currency, (e.g., Accounts payable, accounts receivable, deposits paid, etc.) For these create a new account in your chart of accounts that is under the same header as the original. Make sure you label the new account in the chart of accounts with its currency and update the existing account's name so that it lists the currency. For example, you should end up with accounts called Accounts Payable USD and Accounts Payable CAD.
• If this is the first time that you are adding another currency to your system, some accounts will need to be created from scratch. For example, there are no default FX Gain/Loss Receivables accounts in a standard Actionstep chart of accounts. You need to create these new accounts in your chart of accounts. The accounts you must do this for all start with FX Gain/Loss. These should be income accounts in your chart of accounts. Again, you will have to create an account of these types for each currency that you will be trading in.
• Lastly, some of the system accounts have to be created in the different currencies you will trade in but they can be mapped to the same account in your chart of accounts. For example, Sale/Purchase Rounding Errors can be mapped to the same account in your chart of accounts for all currencies.
• The table lists the account number and name on your chart of accounts based on a default chart of accounts in Actionstep. The example of accounts to create is based on these numbers. Your chart of accounts may have been altered for your own firm's use. Use the account numbers listed as a guide, not as a compulsory setting. 

  
  

  System Account	Should it have its own account in your chart of accounts	Existing account in the chart of accounts for this system account	Example Account to create and use for the secondary account	Explanation
  Sale/Purchase Rounding Errors	No	6-9999 - Sale & Purchase Rounding Errors		When 1c rounding errors are detected in a database, the difference is posted to this account. Can occur in FX or BASE currency and appears to only occur when the invoice is inclusive of tax.
  FX Gain/Loss Receivables Realized	Yes	n/a	4-8310, 4-8312, etc.	Difference between sales invoice posted rate and the actual payment rate.
  FX Gain/Loss Receivables Unrealized	Yes	n/a	4-8320, 4-8322, etc.	Difference between sales invoice posted rate and the current rate for unpaid amounts.
  FX Gain/Loss Payables Realized	Yes	n/a	4-8330, 4-8332, etc.	Same as above but purchases. Can be linked to the same account for convenience if wanted.
  FX Gain/Loss Payables Unrealized	Yes	n/a	4-8340, 4-8342, etc.	Same as above but purchases. Can be linked to the same account for convenience if wanted.
  FX Gain/Loss Bank Revaluations	Yes	n/a	4-8350, 4-8352, etc.	Money gained or lost in bank transactions is based on the value of the money deposits/withdrawals vs the current calculated balance.
  FX Gain/Loss Other Asset	Yes	n/a	4-8360, 4-8362, etc.	This calculates the revaluation of asset accounts that have a non-base currency (excluding bank + linked A/R + A/P accounts).
  FX Gain/Loss Other Liabilities	Yes	n/a	4-8370, 4-8372, etc.	Same as assets, but for liabilities.
  Accounts Payable	Yes	2-1210 - Accounts Payable	2-1220, 2-1220, etc.	A system account that controls what is due to be paid to your debtors. An account in your chart of accounts will have to be created for each currency you will be paying invoices in and it will have to be mapped as a system account.
  Accounts Receivable	Yes	1-1710 - Accounts Receivable	1-1720, 1-1725, etc.	A system account that controls what is due to be paid to your creditors. An account in your chart of accounts will have to be created for each currency you will invoice in and it will have to be mapped as a system account.
  Customer Deposits	Yes	2-1600 - Deposits Received	2-1610, 2-1615,etc.	A system account that offsets your deposits when a debtor pays you. An account in your chart of accounts will have to be created for each currency you will invoice in and it will have to be mapped as a system account.
  Supplier Deposits	Yes	1-1600 - Deposits Paid	1-1620, 1-1630, etc.	A system account that offsets your withdrawals when a creditor pays you. An account in your chart of accounts will have to be created for each currency you will invoice in and it will have to be mapped as a system account.
  Electronic Payments	No		The other currency bank account you have created	This controls what bank account details will show on your invoice. Link this to the bank account that you have set up for that currency.
  Invoice Payments	No		The other currency bank account you have created.	This controls who invoice payments will be receipted by default. You will not have to create a new account in your chart of accounts but you will have to create a system account for this in each currency that you operate in.
  Invoice Receipts	No		The other currency bank account you have created.	This controls who invoice payments will be receipted by default. You will not have to create a new account in your chart of accounts but you will have to create a system account for this in each currency that you operate in.
  Sales Tax Collected	Yes, if billing taxable amounts in another currency	2-1310 - Sales Tax Collected	2-1312, 2-1314, etc.	While not common there could be instances where you are charging sales tax in another currency. If this is the case then a new account should be created in the chart of accounts and mapped as a system account.
  Sales Tax Paid	Yes, if paying taxed amounts in another currency	2-1330 - Sales Tax Paid	2-1332, 2-1334, etc.	While not common there could be instances where you are paying sales tax in another currency. If this is the case then a new account should be created in the chart of accounts and mapped as a system account.

FAQs

Q. Should all general ledger accounts have an equivalent account set up in a foreign currency? 

A. No, the purpose of mapping some accounts in multiple currencies is to allow users to receive funds in multiple currencies and convert the value of that currency into the system's Base Currency by the time those balances hit the financial statements. This means that every balance shown on the financial statements (Income Statement, Balance Sheet, Trial Balance Report, Cash Flow Report) will display their balances in the base currency.