Acumatica offers both Multi-Currency Accounting as well as Financial Statement Translation. Many users confuse the two, but they have completely separate functionality.
In general, think of it this way. Multi-Currency Accounting is more “converting” a single transaction to a base currency and Financial Statement Translation is more “translating” an entire ledger to any other currency.
Here are some key points to understand about their differences.
- Multi-Currency allows users to enter transactions in the Acumatica modules in a foreign currency, different than the company’s base currency. Rates are set up to convert the foreign currency to the base currency, once transactions are released.
- When releasing foreign currency transactions, the system will automatically “convert” the batch to the company’s BASE currency. This keeps the company’s ledger in balance in the BASE currency.
- Users can view the batch in the foreign currency or in the BASE currency.
- Many reports in Acumatica can show the foreign currency amount, as well as the BASE currency amount.
- Multi-Currency must be enabled for Multi-Currency Accounting.
Financial Statement Translation:
- Both Multi Currency and Financial Statement Translation must be enabled to use Financial Statement Translation. You cannot use FST without Multi Currency.
- FST allows users to take an entire ledger in one currency and translate it to another currency.
- Users set up rates for different ranges of accounts – like Average or Month End, and accounts can be translated based on their PTD or YTD balances.
- When a translation is performed, the entire ledger is translated to a new currency. ARM can report on all ledgers.
A company’s base currency could be EUR. With Multi-Currency, any type of currency could be set up and transactions entered in those currencies. Once released, it will convert those transactions to EUR. You can then use FST to translate the entire EUR ledger to a USD ledger. ARM can report on both the EUR ledger and the USD ledger.
If you have questions or need some assistance, visit our support page for more help.