Multi-Currency/FX Billing Config

In this article, you will learn how to configure Multi-Currency/Foreign Exchange (FX) Billing within Actionstep. You can also refer to the video embedded below for a quick overview of the process.

Overview

Multi-Currency Billing is the process of billing to a client in a different currency. It works by applying a currency conversion to your base currency. To be clear, it is not designed for firms that bill in foreign currencies but receipt payments in the base currency. It is designed for firms that have bank accounts in more than one currency. 

Getting Started

To start off, you'll want to enable the feature. Navigate to:

Admin -> Accounting -> Accounting Preferences

Under the 'Currency' section, toggle the 'Multi currency banking' option to 'On' as per the screenshot above. Make sure you save this change.

Entering Currencies/Exchange Rates

Now that you've enabled this option, you should see a new menu item under Admin>Additional Settings> 'Currencies & Exchange Rates'. Click on this new option.

At first, you'll only see your base currency (eg. USD). Click on 'Add currency' in the top-right corner to start adding additional currencies to the system. You'll be prompted to enter the abbreviated currency code (eg. GBP for Great British Pound), its name and corresponding symbol.

After you enter in additional currencies, you'll be able to click on the exchange rates shown on the column next to the currency names to adjust them. Click on 'add row' and choose a date from which you'd like the exchange rate to be effective. Then, simply enter in the rate and the source of the rate, and hit 'Save'.

Updating Your Accounts

Now that you've entered in new currencies and their corresponding exchange rates, you'll need to update your 'System Accounts' and your 'Accounts List'. To access your system accounts, navigate to:

Admin -> Accounting -> System Accounts

You'll find that there are now a number of 'System Account Types' that are not linked to any ledger accounts. Once you've identified which system account types need configuring, you'll need to create new ledger accounts in the 'Accounts List' for them to be mapped to. You'll also need to configure any system account that starts with 'FX Gain/Loss' to a general ledger account. 

System Account Configuration 

Things you need to know

1. The table below explains what system accounts will have to 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. 
   
   
2. Some of these system accounts will already exist in the system under your base currency, eg: 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 accounts name so that it lists the currency. For example, you should end up with accounts called "Accounts Payable USD" and "Accounts Payable CAD".
   
   
3. If this is the first time that you are adding another currency to your system some accounts will need to be created from scratch. There is no default "FX Gain/Loss Receivables" in a standard Actionstep chart of accounts. You will have to create these new accounts in your chart of accounts. The accounts you have to do this for are all the ones that 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.
   
   
4. 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.
   
   
5. In the table below we list what the account number and name is 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 already. Use the account numbers listed as a guide, not as a compulsory setting.

System Account	Should it have it's own account in your chart of accounts?	Existing account in chart of accounts for this system account	Example Account to create and use for 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 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 un-paid 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 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 which 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 accounts details will show on your invoice. Link this to the bank account that you have setup for that currency.
Invoice Payments	No		The other currency bank account you have created.	This controls who invoice payments will be paid to 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 to 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.

For more information on creating new accounts within the accounts list, please see this article, or refer to the video embedded above.

Information:

Note: You won't need to create new accounts for system account types you haven't configured for your base currency. For example, if you don't have a 'discounts given' account type for your base currency, there is no need to create one to support a newly added currency.

Once you've added the new accounts, navigate back to the System Accounts list and click on the blue text that reads '(Not configured)' and select the newly created corresponding ledger account for each required system account type.

Lastly, when you access your global billing settings via:

Admin -> Billing Settings

You'll see that there is a new section labeled 'FX Billing' - switch this toggle to 'On' - You'l need to set a default conversion rate.

Information:

Conversion Rates vs. Exchange Rates

Conversion rates are used to convert the value of time entries or expenses you record for billing purposes, whereas exchange rates are configured and used automagically in the background to calculate the accounting side of things.

Make sure to save this change. This is your default conversion rate, but you can select different ones for individual matters.

You've now completed your Multi-Currency Billing config.

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