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Microsoft Great Plains Multicurrency by cmlang

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									by: Andrew Karasev

Microsoft Great Plains is main Microsoft Business Solutions accounting package for the US
market, where multicurrency issues are rare. However even US companies may have branches in
foreign countries where they use Great Plains. Microsoft Great Plains is also in use in Spanish
speaking Latin America (in Brazil both: Navision and Microsoft Great Plains are present), UK,
Australia, Canada and South Africa. When you first think about multicurrency you probably
have in mind the revaluation question. Currency triangulation which was the need when
European currencies were fixed to Euro is not an issue any more.

1. Sales and Purchasing multicurrency when you are selecting accounting package with
multicurrency, you need first understand if it has multicurrency on the Sales and Purchasing
modules level, not just in GL. The problem behind is like this. When you have sales in foreign
currency you will probably get the payment later on when currency may potentially lose some
value against your functional currency (like US Dollar or Euro however in our days Dollar is
very good candidate to do so, but this is outside of the scope). Then even if you do have
payments upfront in foreign currency you probably dont plan to convert this currency to
functional for repatriation, you probably keep it in the local bank and so your foreign money is
subject to fluctuation in comparison to functional currency

2. Unrealized and Realized Gains and Losses gain or loss is unrealized when transaction is not
yet settled (like payment is not received and not applied but you would already like to know if
you have unrealized gain or loss). When transaction is settled then realized gain or loss might be
in place this is simply the difference of what if you would get immediate payment and got
payment now.

3. Revaluation this is when you decide to recalculate your Sales, Purchasing transaction and post
realized and unrealized gains or losses. As the result you usually want GL transaction to be
created

4. GL Multicurrency is simplified version. You may have transactions entered directly in GL
with foreign currency selected in this case it is subject for possible revaluation.

5. Microsoft Great Plains Multicurrency it is on the level of the following modules: GL,
Accounts Receivable, Accounts Payable, Sales Order Processing, Purchase Order Processing,
Bank Reconciliation, Project Accounting. So it is full-featured multicurrency.

Happy implementing! if you want us to do the job - give us a call 1-630-961-5918 or 1-866-528-
0577! help@albaspectrum.com

This article was posted on December 27, 2004

								
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