Foreign Currency
Written by Brandy Burch
Updated at March 25th, 2025
Pak Accounting offers the ability to record transactions in a primary or secondary currency. This is an optional add-on. Financial reporting can be done in one currency only. However, two reports can be generated, one in the primary currency and one in the foreign currency, for comparative purposes.
Setup
- In Utilities > Global > Currency Translation Master, enter a two digit foreign country code of your choice (CA for Canadian Dollar in our example). Then, enter the effective date and the exchange rate for the foreign currency as it relates to the US dollar. As the exchange rate changes you will need to update this grid. You can set up as many translations as you need.
- In General Ledger > Master Files Maintenance > Company Options > Optional Add-On, enter the two digit code setup in step one.
NOTE: Only one foreign currency can be selected at a time.
NOTE: If you are setting up foreign currency after you already have posted detail in Pak Accounting's General Ledger, and you would like to apply the translation to the previously entered detail, you must resummarize the posted detail at Utilities > GL Posted Detail Fixes > Calc 2nd Currency.
Using Dual (Foreign) Currency
When first entering Pak Accounting (or by selecting the [F8] shortcut key if you are already in the system), specify either Primary Currency or Secondary Currency to use as the Company Default Currency when entering data into Pak Accounting.
Accounts Payable
When purchasing goods or services from a foreign country, enter the invoice into Accounts Payable and enter invoices to Pay. You will be able to select whether the invoice is in US dollars or foreign currency.
When paying the invoice, determine if the check is to be written in US or foreign currency. If paying in foreign currency, check the box Instead of US Currency, Print Checks using Foreign Currency in the Bank Account Master. If printing checks in US dollars, uncheck this option.
NOTE: When voiding A/P Checks, this option must be the same as when the check was cut.
For example, I had the box checked so I could cut a check using CA Currency, and then I unchecked the box since most of my checks should be in US Currency. However, later, I needed to void the CA check. If I don’t recheck the box, I will get the following error.
To check what it was, go into View/Trend. On the Detail by Account screen, scroll to the right to see more columns. Towards the end, you will see a column called “OriginalCC.” AP entries will either be Primary (US in this example) or Secondary (CA in this example). Look at the Sys column for the module. In this example, A = A/P, D = Deposit Entry.
US = box was not checked. CN = box was checked
Deposit Entry
Deposit entry is similar to Accounts payable. If the box is checked in the bank account master (see above) for the selected bank code, the system will record the deposit amount in foreign currency.
Entering Journal entries
Entries maintenance will allow you to enter journal entries in US dollars; foreign currency is automatically calculated. You will need to log into your company under foreign currency for these options to appear.
Financial Reporting in Foreign Currency
When first entering Pak Accounting (or by selecting F8 if you are already in the system) specify the default currency that will print on the financial reports.
- Selecting a Secondary Currency will print the reports in the selected currency.
- Selecting US Dollars will print the reports in US Dollar
Pak Accounting does not print comparative reports with US verses Foreign Currency. You must select which currency to print on financial reports. NOTE: Once the option is selected, you will notice the foreign currency functionality on Ledgers, Journals, etc.
View Trend
View Trend can be set up to show a comparison of US and foreign currency. Select Options at the bottom of the screen. Change Column 2 to Foreign Currency.
The Comparative summary screen will show the values in both US and Foreign.
