Hi, i need help to set up company with 3 subsidiaries in 3 different countries. Therefore we will need 4 different base currencies, but 1 consolidated base currency for the group (USD). The 3 subsidiaries must also be able to report in their local base currency on day to day operations, including local taxes.
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How to set company with subsidiaries with multiple base currencies
Best answer by Laura03
Hello,
Yes, Acumatica can accomplish your needs using multiple base currencies in one tenant, with Currency Translation to USD (using Reporting ledgers in the 3 non-USD subsidiaries).
VAT and US Sales Tax can be configured in the same tenant.
Your ledgers will look something like this:
US Company: Actual Ledger = ActualUSD
Company 2: Actual Ledger = ActualCury2, Reporting Ledger Cury2toUSD
Company 3: Actual Ledger = ActualCury3, Reporting Ledger Cury3toUSD
Company 4: Actual Ledger = ActualCury4, Reporting Ledger Cury4toUSD
New ARM/Financial reports will be needed to report ActualUSD alongside three reporting ledgers.
I recommend configuring a ‘proof of concept’ tenant where you can test your client’s multi-currency processes from beginning to end. Multiple base currencies is a relatively new feature, and thorough testing will avoid surprises.
One example of Acumatica limitation - Stock Items have only one weight recorded on the packaging tab. Can your client’s stock items ship successfully with only one weight? Or does the same item shipping weight need to be measured in different units in different countries?
For step-by-step instructions, please see Acumatica training F335 VAT tax and F340 Multi-Currency.
Laura
+20Hello,
Yes, Acumatica can accomplish your needs using multiple base currencies in one tenant, with Currency Translation to USD (using Reporting ledgers in the 3 non-USD subsidiaries).
VAT and US Sales Tax can be configured in the same tenant.
Your ledgers will look something like this:
US Company: Actual Ledger = ActualUSD
Company 2: Actual Ledger = ActualCury2, Reporting Ledger Cury2toUSD
Company 3: Actual Ledger = ActualCury3, Reporting Ledger Cury3toUSD
Company 4: Actual Ledger = ActualCury4, Reporting Ledger Cury4toUSD
New ARM/Financial reports will be needed to report ActualUSD alongside three reporting ledgers.
I recommend configuring a ‘proof of concept’ tenant where you can test your client’s multi-currency processes from beginning to end. Multiple base currencies is a relatively new feature, and thorough testing will avoid surprises.
One example of Acumatica limitation - Stock Items have only one weight recorded on the packaging tab. Can your client’s stock items ship successfully with only one weight? Or does the same item shipping weight need to be measured in different units in different countries?
For step-by-step instructions, please see Acumatica training F335 VAT tax and F340 Multi-Currency.
Laura
Hi Laura. Will we need to update the exchange rates daily to ensure that reporting ledger is updated, since data entry from AR, AP and CB transaction is captured in the base currencies.
+20Hello,
Refresh Currency Rates process in Currency module may be scheduled to run daily, thus keeping currency exchange rates up-to-date.
Laura
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