Sage 100 Multi-Currency Series: Three Use Cases for US-Based Companies
Since the DSD Multi-Currency suite of products were created back in 1994, DSD Business Systems has sold Multi-Currency to hundreds of Sage 100 customers over the world. The majority of customers that we’ve worked with have similar Multi-Currency needs, however there are actually three categories of users that have specific requirements for Multi-Currency. Here are those categories:
User #1: US-Based Company that buys / sells in different currencies
The first type of scenario is a US-based company that has the need to buy and/or sell in different currencies. This business model would define their Base Currency to be their Local Currency, which is US Dollars, and they would then have DSD Multi-Currency modules for each Sage 100 module that requires foreign currency data entry and reporting.
The CUMC Multi-Currency module is the “required” module for all users that need Multi-Currency functionality. This module allows the designation of a Base Currency (which is how the General Ledger stores information), as well as the setup of other currencies and associated exchange rates.
If the company needs to sell to customers in different currencies, then the ARMC Accounts Receivable Multi-Currency, SOMC Sales Order Multi-Currency, IMMC Inventory Multi-Currency, and RAMC RMA Multi-Currency may be needed.
If the company needs to buy from vendors in different currencies, then the APMC Accounts Payable Multi-Currency, POMC Purchase Order Multi-Currency, and IMMC Inventory Multi-Currency may be needed.
It should be noted that User #1 could also be a non-US company that buys/sells in different currencies. DSD has many users in Canada, Mexico, and Europe that fit this profile.
User #2: US-based Company that has a Foreign Subsidiary
The second scenario is a US-based company that has acquired a Foreign Subsidiary, and has the need to setup that Sage 100 company in a Base Currency other than US Dollars. In this scenario, the Parent Company has a Base Currency of US Dollars, but the Subsidiary Company has a Base Currency of their Local Currency, such as Canadian Dollars, Mexican Pesos, or Euros. The Parent Company will only operate in US Dollars, and the Subsidiary will only operate in their Local Currency.
Sage 100 already allows for two companies to be different currencies, as long as you only operate in that currency in that company (numbers are numbers). However, if you are a US Corporation that has a Foreign Subsidiary company, you must report financial data for the Subsidiary to their local government in Base/Local currency AND you must also report to the US government (IRS) the financial data for the Subsidiary in translated US Dollars as well. This requirement is outlined in the Summary of Statement No. 52 under the FASB Guidelines.For this type of user, the only modules you need are the CUMC Multi-Currency module and the GLMC General Ledger Multi-Currency, which allows for FASB 52 Reporting.
For more information on FASB 52, stay on the look out for the third part of this Multi-Currency blog series titled What is FASB 52 and How does DSD Multi-Currency address it?
User #3: US-based Company that has a Foreign Subsidiary
The third type of business model is a combination of #1 and #2. If a company has a Foreign Subsidiary AND either the Parent Company or Foreign Subsidiary operate in multiple currencies within the company, then it will need ALL of the DSD Multi-Currency modules. This type of business model will buy and/or sell in different currencies, and will also be required to do FASB 52 Financial Reporting.
DSD’s suite of Multi-Currency modules will accomplish the needs of each of these types of users, it’s just a matter of choosing the right modules. For more information on the specific DSD Multi-Currency modules that are needed, see Ashley Berger’s blog Multi-currency What modules you need.