4 Reasons Why You Should Enable Multicurrency Management for Microsoft Dynamics GP Even if You are Not Using Multiple Currencies (Yet)October 14, 2015 4:59 am
If you are not using multiple currencies, you don’t need Multicurrency Management for Microsoft Dynamics GP, and for that reason, maybe you have decided not to enable it at all. However, if there is any chance of your using multiple currencies in the future, you can save yourself a lot of time and trouble by enabling Multicurrency Management now, even if you’re not (yet) using multiple currencies.
As transactions become more and more global, organizations increasingly find themselves dealing in multiple currencies. With Multicurrency Management, you set up a base currency or functional currency for a company, and this is the default currency used by Microsoft Dynamics GP. You’ll see foreign exchange rate gains and losses over time, and Microsoft Dynamics GP can keep track of these for you. For example, if your company is American, using US dollars as its functional currency, and you sell a book for $10 Canadian, the foreign exchange rate may translate that to $9 US at the time of sale. But by the time payment is actually collected, maybe the exchange rate translates that to $8. You’ve realized a foreign exchange rate loss, and the system needs to be automatically updated.
But again, even if you are not (yet) using multiple currencies, it might be a good idea to enable Multicurrency Management, for the following reasons:
- If you enable it and set a functional currency now, this will keep you from having to run a lengthy Check Links process if you enable it in the future. If it’s 10 years later that you enable it, that’s a lot of data that could need to be assigned to your functional currency, requiring a lot of time.
- If you are using Analytical Accounting and printing reports using Management Reporter, Management Reporter relies heavily on the Currency ID associated with the transactions in General Ledger and in Analytical Accounting.
- Mismatched currency IDs may result in documents not showing up when trying to use apply windows in Payables Management, Receivables Management, or Lockbox.
- Many third-party solutions that integrate with Microsoft Dynamics GP require a functional currency.