AugTool Documentation
Forex
General Forex Usage and Setup
You have to contact Augtool to turn on a foreign currency for you in a chosen business unit.
Once you start a document in the quote to cash or procure to pay process with a foreign currency, all other documents generated from that document will be in that currency. Please note that all Stock transactions with Active Stock mode enabled in Augtool will still be in your base currency.
What you will see below is a general ledger run with currency "All". This will show all documents created in the system in their base currency and the relevant foreign currency values on the right hand side.
The only three places in the system that you have to use a foreign currency in setup is under Bank (a foreign currency bank account) and under the Organisations we recommend assigning a foreign currency Accounts Receivable and Accounts Payable (for easier reconciliation) and Defaults. You can however, transact to the receivable and payables account without assigning a foreign currency account because all Chart of accounts are multi Currency. For example, you can transact to your Sales account with multiple currencies and the system will handle the various currencies automatically and you will be able to report on the Sales Account across multi currencies.
The Defaults below that need to be setup are:
Forex Variance - Used for Gains and Losses when allocating on the bank.
Rounding Account - Any rounding that happens in the system goes to this account including forex rounding issues.
Forex Evaluation - Used when running our Forex Evaluation that re-evaluates open balances in foreign currencies to a new rate.
What you can see below is the purchase invoices screen with the Currency filter set to all. You can then see the various totals and balance figures in the various currencies you have transacted in. Every other document in the system can also be seen like this.
As you can see below under the business unit PanaMine Augative have set a USD and a EUR currency to be used in that Business unit. This is what Augative have to do for you and then you are good to go.
Under the system menu >> Exhange Rates, if you have user rights for this, you can see the Daily spot rates the system gets from a Foreign Currency online service and a Periodic rates section where you can set a foreign currency to be used for a period of time. If a periodic rate has been set, it will overide the daily spot rate. If you have not set a periodic rate, the system will use the rate in the Daily Spot Rate. The daily spot rates refresh every day per currency you have rights to use on your Business unit.
As you can see below, we have set multiple currency accounts for panaMine. Proprint has two Currency accounts for one receivable and payables accounts set. Cape Fruit has only got a Base Currency account. Even though ProPrint has one chart of account set here for the base currency and the USD currency the users can still transact in a foreign currency to this account and the foreign currency figures will still be stored. This just means that this one account will have multiple currency transactions in it. Cape Fruit only has a Base Currency so when transacting in Cape Fruit you will only be allowed to transact in Base.
Essentially if you want to allow a user to transact in a foreign currency with a certain organisation, then you have to create a Foreign Currency link here but you can link the foreign currency to one or two chart of accounts (One like in ProPrint or Two like in PanaMine).
Purchases and Sales
Sales and purchase documents behave in the same way for foreign currency so for simplicy reasons we have only shown you a Purchase invoice below.
Only Customers and Suppliers that have a currency set under the Accounts Tab will be allowed to set a currency for a document on the bottom left of the header.
You can see on the Dollar based Purchase Invoice 041 the line items are in usd and the total is also in usd but the system shows you its respective base currency conversion for the rate specified on the document.
On the header of a purchase invoice the system will automaticaly get the periodic rate the user has set or the spot rate the system has automatically set. The user can also override the rate directly on the invoice and refresh the rate back to periodic or spot rate.
An important part of Augtool with regards to balances and curency is the document log. Credit notes, payments/receipts, Net Settlements will change the balance. These changes will be shown on the document log and is actually the data that the aging reports use.
Please use this popup to familiarise yourself with the balance changes especially when using forex.
Prices
When using foreign currencies, the system needs a price list for that item/customer/supplier to pull through a line item of any document. Augtool only have default prices per item on the item for the base currency.
Please setup a Foreign currency price list (Stock >> Price lists) for the items/customers/suppliers so that the system can automatically pull through prices for you. You can also manually put a price in for the line item.
Bank
In order to use a foreign currency bank account you have to create a bank account and indicate to Augtool what currency that bank is in as seen below.
You can see below that there are Two USD bank accounts and one EUR account. Take a look at the Currency columb below.
Below is the USD bank account screen that is the same as the base currency bank account screen just shows you foreign currency figures.
When importing a bank statement into a foreign currency bank account you will notice that all the figures are in foreign currency.
This part of foreign currency is slightly difficult to understand or somewhat counter intuitive. Please take extra care when reading the next section.
As you can see below we are allocating a foreign currency bank line (USD) to USD Purchase invoices (Top 3) and Rand invoices (Bottom 4) and an unalocated amount in Base Currency.
You can also allocate to unalocated (or account allocation) in USD.
For the Base currency portion of the allocations you have to tell the system how much of the base currency you are allocating to. We are going to create an automation for this where it will allocate based on the FX Rate. Should you want or need this right away, please let us know but it is actually best that the user enter in how much rands you want to allocate.
You can see below that the user has not indicated how much rands they want to allocate to the rand based invoices below (amount field is 0). So the entire difference will go to a forex variance account which is not ideal.
As you can see below there are three lines that have a FX amount stored for the three usd invoices and then direct rand based allocations to the payables account. However, you will notice that there is a foreign variance calculated for all of the transactions (and a massive variance for all of the Rand Based invoices - not correct).
You would think that the USD allocations would not have a foreign variance but it should because we are using a foreign bank account and all transactions in foreign currency will have a variance if the FX rate on the USD invoices are different to the rate on the top right of the bank allocation screen used for the allocation.
What should have been done as below was that the user states how much USD they actually used for the allocation of the Rand based invoices as below. In this case the variance will be small and only based on the rate of the bank (top right at 14.682343) and the assigned rate of the allocation which is essentially what you entered in. For example, the user entered in 1000 USD for a 11500 Rand invoice. This rate is 11.5 but the bank rate is 14.682343.
You can see above that there are three lines of R 54.80, R 1,607.34 and R2593.67 for the variance of the usd to usd invoices based on the rate of the USD invoice and the Rate of the bank on the top right (FX amount)
You can also see the other four figures of R3,182.34, R497,183.58, R1,534,129.54, R153,412.95 for the variance of the alocation to the Rand invoices. One of them is really high namely the R1,534,129.54. This makes sence because the user allocated 5 300 USD to a R 575 000 invoice. You will also notice that one of the lines is in a debit. If there is a gain or loss the system will automatically assign a debit or a credit to the forex Variance account.
PLEASE NOTE:
When alocating from currency X on bank to Currency X on a document or target allocation item, there will be no FX columns on the right of the Amount Field.
If there are any FX columns to the right, you will have to manually calculate how much of the BANK you want to assign to that figure. All AMOUNT coluns relate to how much of the bank you want to allocate. If the currencies match you will not have a FX Column and will not have to manually calculate how much of that bank amount is going to be allocated to the target FX amount.
All forex rates that are used in the system are essentially best guesses that the user can put on a document to calculate the expected base figure besides when something is allocated. Essentially the true forex rate is only real once you allocate on the bank becuase that is what you actually got. If you have pre negotiated with the bank a rate for the month however, then that is what you will get in the bank and is also essentially real.
Reporting
Reports can be run with All, Base or the Foreign Exchange. Please note that when run for all it will show all transactions but will also expand the report with FX columns. If you run for base or any foreign currency, it will only show transactions created in that currency.
Customers and Suppliers accounts and statements
Similarly, statements can be run with All, Base or the Foreign Exchange. Please note that when run for all it will show all transactions but will also expand the report with FX columns. If you run for base or any foreign currency, it will only show transactions created in that currency.
