The multi-currency integration in GUAVA ERP is comprehensive. The costing, purchasing, sales, payables, and receivables functions are all integrated to support multi-currency. All transactions processed in foreign currencies are converted to the base currency based on the exchange rate effective at the time of the transaction—and all transactions are then posted to the general ledger in the base currency. Currency gains and losses which are attributable to fluctuating rates are also posted to the general ledger, using a currency gain/loss account. Since the system tracks gains/losses, the impact of currency fluctuations can be tracked throughout a transaction’s life cycle.

Multi-currency features that provide powerful and comprehensive purchasing, sales and accounting functions. In the global marketplace, commercial ease in all currencies provides the complete competitive edge. Our optional GUAVASOFT Multi-Currency Module delivers powerful and comprehensive multi-currency accounting, purchasing and sales functions. Gain sophisticated currency management and seamless transactions in any number of currencies toward a global competitive edge.

Secondly when we say multi currency then our revaluation comes into picture wherein we reevaluate all our outstanding transaction and the exchange gains and losses that rise during this revaluation can be treated as permanent or temporary based on the Gain/Loss accounting method we specify in the common services option. The revaluation process all your transactions present in Accounts Payable, Accounts receivable and transactions preset in GL with non-functional currencies

GUAVA ERP generally supports two kind of gain loss accounting methods as described in the subsequent paragraphs.

1. Realized and Unrealized Gain/Loss

Under this accounting method, exchange gains and losses that result from fluctuations in exchange rates are considered unrealized until the transactions are settled.

At each balance sheet date, you revaluate outstanding balances that are updated in foreign currencies. Any exchange gains or losses calculated during revaluation are posted to unrealized exchange gain and unrealized exchange loss accounts, and the balance sheet is stated using current rates. However, because exchange rate fluctuations are considered temporary, unrealized gains or losses are not taken into net income, and they are reversed in the next period. Thus the effect of such revaluation gets reversed in the immediate next day.

2. Recognized Gain/Loss

Under this accounting method, exchange gains and losses are recognized when documents are revalued using the exchange rate in effect at the revaluation date (usually the balance sheet date), or when they are settled. All exchange gains and losses are considered permanent, whether they arise during revaluation or upon settlement, and they are not reversed in the next period. They are posted

To exchange gain and exchange losses accounts and are included on the income side. Also ones we set this method in common services we cannot change the gain/loss method to other one.

Thus we have to make sure we chose a proper gain loss accounting method before we start evaluating the transactions.

Multi Currency Features :
  • Complete support for all currency
  • Comprehensive currency revaluation to restate outstanding source currency balances and transactions as the exchange rates fluctuate
  • Override default currency and exchange rate definitions at the transaction level
  • Print reports in both functional and source currencies
  • Process payments or receipts in any currency
  • Unlimited currencies
  • User-defined purchasing exchange rates
  • User-defined sales exchange rates

Multi Currency in Accounts Payable

  • Assign a default currency for each vendor and change defaults at any time
  • Assign currencies to individual checking accounts and print checks in that currency

Multi Currency in Accounts Receivable

  • Assign a default currency for each customer and change defaults at any time

Multi Currency in Inventory Control

  • Assign a default currency for any inventory item
  • Different buy and sell rates are supported

Multi Currency in Order Entry

  • Integrated in sales order processing, invoicing and quoting: customer’s currency identified and reflected in transactions
  • The ability to over-ride the Default Customer Currency at the transaction stage

Multi Currency in POS

  • Charge your POS customer in your base currency or their assigned currency
  • Close your shift and view the amounts received in multiple currencies
  • Open your shift with floats in different currencies
  • Override the default defined customer currency on-the-fly during a POS ticket