Transaction Processing and Multiple Currencies

When you track multiple currencies in DPS, transactions are stored in multiple currencies.

A transaction is stored in:

• The transaction currency specified when you create the transaction file in Transaction Entry. Storing amounts in the transaction currency lets you match transactions with their original source documents.
• The functional currency of the company (more specifically, the active company if you also have multiple companies) that owns the project, phase, or task being charged. This is the translated value of the amount specified in the transaction, if the transaction and functional currencies are not the same. Storing amounts in the functional currency lets you produce general ledger reports in your company's functional currency, even if the transactions referenced were originally entered in a mix of currencies.
• Other currencies, as necessary, to support billing, reporting, and other business needs. When the transaction currency differs from these other currencies, DPS calculates the appropriate exchanges.

Example

Your United States company receives a vendor invoice in Canadian dollars. DPS stores the original invoice amount in:

• The company's functional currency, United States dollars.
• The transaction currency of the invoice, Canadian dollars.
• Other currencies, if different from the functional and transaction currencies.

Later, you can match the original vendor invoice to its transaction file, because amounts in both places are in Canadian dollars. However, on the Account Analysis report, all amounts display in United States dollars, letting you confirm that the transaction accounts and amounts are correct.

If Currency Translations are Necessary

In general, if DPS performs a currency translation between the transaction currency and the functional currency, it stores the transaction value using the daily exchange rate in effect on the date on which the transaction occurs, unless the person who creates the transaction file in Transaction Entry deliberately overrides that rate.