Currencies - EMU Card
This page describes the fields on the 'EMU' card of the Currency record. Please follow the links below for descriptions of the other cards:
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- Prevent Base Rate Changes, Prevent Foreign Rate Changes
- When you use Currencies in transactions of any kind (for example, in Invoices or Nominal Ledger Transactions), you can change the exchange rates between the two Base Currencies and/or between the appropriate Base Currency and the foreign Currency. Such a change will only apply to the single transaction in which you are working.
- If you do not wish to allow such ad hoc changes, select either or both of these options as appropriate. This will prevent the changing of Exchange Rates in all Sub System records (e.g. Invoices, Purchase Invoices) but not in Nominal Ledger Transactions. You will always be able to enter ad hoc changes to Exchange Rates in Transactions.
- Member of the EMU
- Tick this box if the Currency is used in a country that is a member of the European Monetary Union (EMU).
- When you enter a Receipt or Payment, the Invoice being paid can be treated as fully paid if the amount received or sent is slightly different to what is outstanding, providing that the difference is within an allowable margin. The difference will effectively be written off, and will be posted to a Round Off or Write Off Account. In line with EMU requirements, different Round Off and Write Off Accounts will be used for this purpose, depending on whether the Currency is a member of the EMU.
- Round Off Accounts will be used when the Receipt or Payment is in a different Currency to the original Invoice. If the Receipt or Payment Currency is a member of the EMU, the EMU Rate Round Off Account will be used, otherwise the Rate Round Off Account will be used. You should specify these Accounts on the 'Exchange Rate' card of the Account Usage S/L and the 'Rate' card of the Account Usage P/L settings.
- Write Off Accounts will be used when the Received or Sent Currency is the same as that in the original Invoice. If the Received Currency is a member of the EMU, the EMU Rate Write Off Account will be used, otherwise the Write Offs Gain and Loss Accounts (Sales Ledger) or the Write Off Round Off Account (Purchase Ledger) will be used. Again, you should specify these Accounts on the 'Exchange Rate' card of the Account Usage S/L and the 'Rate' card of the Account Usage P/L settings.
- Use the Automatic Round Off Limit and Automatic Write Off Limit fields on the 'Round Off' card of the Currency record to specify the allowable margin.
- Date
- If you have ticked the Member of the EMU box above, specify here the date when the Currency was incorporated into the Euro scheme (i.e. the date when the transition process of joining the Euro began).
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Currencies and Exchange Rates in Standard ERP:
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