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Dynamics 365 Community / Forums / Microsoft Dynamics GP (Archived) / Multicurrency and Proj...
Microsoft Dynamics GP (Archived)

Multicurrency and Project Accounting

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Posted on by Iz Flores 155

Hi, I'm trying to use multicurrency with project for our company as we expand into Europe.  I created some cost categories to use with multicurrency projects since these cost categories have to have the "billing rate" or "none" as the profit type.  However, when posting a transaction, only two sets of accounts are generated in the distributions window, COGS and Contra (AP) account. 
When I use a cost category with profit type of "Markup %", the receivings transaction entry generates 4 sets of accounts, COGS, Contra (AP), Unbilled Expenses, and Work In Progress accounts.  How can I change the cost category setup for multicurrency to ensure transactions post with the 4 accounts on the distributions window?

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  • Kristie McNulty Profile Picture
    Kristie McNulty 977 on at
    RE: Multicurrency and Project Accounting

    Was this scenario ever answered?  I'm trying to figure out the trick for billing a customer for an employee expense which has been posted against a project which is a project set up in a currency other than the database's local currency.  It seems the only way I can capture an employee expense to bill is if I first enter a forecast against the cost category that will be used by the employee, have the employee enter their expenses, and it's then I can bill the cost category.  Is this the case or are there other steps I'm not able to find between the two PDF's I've been reading (ProjAcctBilling.pdf & ProjAcctCostManagement.pdf)?

  • Iz Flores Profile Picture
    Iz Flores 155 on at
    Re: Multicurrency and Project Accounting

    The settings are a little different.  I'm working with a project whose currency is set to CHF.  I'm also posting the expense report in CHF.  Therefore, all expenses will be in CHF.  I have a couple of things I want to accomplish.

    1. For an employee whose expenses were incurred in CFH, say CHF100.00, I want to post the CHF 100, pay the employee (let's say in CFH) CHF 100, and bill the client CHF 100.  I know there are some things that have to happen in the background, espcially related to the employee payable since the functional currency of the company these transactions are in is USD.  I think i'm ok with the payable side.  I mostly want to make sure the expense invoice generated using this expense report shows CHF 100 without having to do any currency conversion at the time of invoicing.

    2. For an employee whose expenses were incurred in USD, I will convert the expenses to CHF using the rate for the various expense datses of the expense report (this is an issue) and then post all expenses for various dates to CHF.  I will then have to adjust the distributions to include a gain or loss based on the difference created by the rates.

    3.  in the above two examples, when I try it, the system does not put in the "true amount" for all 4 distributions.  I have "Billing Rate" as the profit type for T&M project type.  I was under the impression that cost categories for foreign currency projects could not have a "%M" budget profit type??  I'm trying to get all four distributions to match their amounts.

  • Bridget Cattie Profile Picture
    Bridget Cattie 170 on at
    Re: Multicurrency and Project Accounting

    1. You are correct; you can only set one exchange rate per employee expense document (not by line). If you are manually calculating different amounts to pay the employee for different dates then you can manually split the distributions and use a gain/loss account (or any account you choose - distribution type will still be PURCH). Keep in mind that the amount you enter will also be the amount that you will see in the billing transaction so you may need to edit that transaction as well.

    2. It sounds like this is a time and materials project in USD (which is also the functional currency) with "when performed" as the accounting method. The budget profit type is "billing rate", you have $1.00 in the profit amount field and you are entering an employee expense in another currency.

    If my interpretation of the settings above are accurate you will not be able to get the "true amount" for all 4 distributions. Change the budget profit type to '%M' and renter the employee expense transaction. If I am mistaken about your settings, please feel free to provide the details so I can better explain how you might accomplish this.

  • Iz Flores Profile Picture
    Iz Flores 155 on at
    Re: Multicurrency and Project Accounting

    I am able to key in an expense report under Employee Expense Entry within the Project Module.  However, we typically have 4 accounts that show up in the distribution.  A couple of issues I see:

    1.  the currency exchange rate used is the one based on the report start date and this is applied to all the transactions entered.  This seems like a problem because if the expense report covers several different days, then the transactions would have different exchange rates also.  If we are calculating a different amount to pay the employee based on the exchange rate for various expense dates, would the difference just have to go to gain/loss?

    2.  The distributions show the four accounts we use. The AP Cash account and the Expense account show the correct value in both originating and functional currency.  However, the Unbilled Accounts Receivable and Unbilled Project Expense accounts show only a $1 and the corresponding amount in foreign currency based on exchange rate.  I need for all four accounts to post the same true amount.

  • Bridget Cattie Profile Picture
    Bridget Cattie 170 on at
    Re: Multicurrency and Project Accounting

    I suppose I should have worded that differently. Project Accounting works with multi-currency however the functionality is not always the same.

    You definitely can have employees enter expense transactions in non-functional currencies. As long as there is a current (non-expired) exchange rate for the currency you want to use and the currency has been assigned to the company you will see the currency in ps time & expense (business portal), the PDK app, and the GP expense report entry window. You can only assign 1 currency to a given expense report. So, if the employee has transactions in multiple currencies they will have to create multiple expense reports or convert the foreign currency receipts to the currency being used on the expense report.

    Are you getting an error when trying to use a foreign currency on an expense report?

  • Iz Flores Profile Picture
    Iz Flores 155 on at
    Re: Multicurrency and Project Accounting

    Bridget,

    Thank you!!  this actually worked.  Although I haven't had a chance to test the billing aspect of it.  I will have to do that next.  Your response makes it seem as if it will not work.  

    do you know if there's a way at all to use MS Dynamics to handle employee expenses in multi-currency through the project billing functionality?

  • Bridget Cattie Profile Picture
    Bridget Cattie 170 on at
    Re: Multicurrency and Project Accounting

    While MBS maintains that Multicurrency is supported in Project Accounting, the truth is that project accounting does not work without jumping through hoops in currencies other than the company's functional currency.

    To get the distributions to default as you would like (Foreign currency T&M project with accounting method="When Performed" using profit type "BRate" and set the billing rate on the receivings item detail entry using the expansion button of the cost category for each line). However, when you attempt to bill these purchases the price will not populate automatically on the invoice (like it does when you use M% on a functional currency project).

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