Enabling multi-currency

Enabling multi-currency

Multi-currency support allows your business to transact, invoice, and report in multiple currencies simultaneously. Once enabled, you can add new currencies, set exchange rates, and configure accounts to operate in different currencies.

Before you start

• You must have system settings or company configuration permissions (usually granted to system administrators or accounting managers).
• Understand your business's currency needs: Which currencies do you buy or sell in? Which currency is your reporting currency (the main currency for financial statements)?
• Note that enabling multi-currency affects how accounts are configured and how transactions are recorded. It is typically set up during initial configuration, though it can be enabled later.
• Once enabled, all users will see currency fields in transaction forms. Ensure your team understands the basics of multi-currency transactions.

Steps

1. Go to Settings → Company Settings (or Settings → Configuration, depending on your product). Open in Usystems

2. Locate the Multi-Currency or Currency Settings section.

3. Look for a toggle or checkbox labeled Enable Multi-Currency or Use Multiple Currencies.

4. Click to enable it. The system will activate multi-currency mode.

5. You will be prompted to select your base currency (or reporting currency). This is the currency in which you report financial statements and the default for new transactions. Choose the currency your business primarily operates in (e.g., AFN for Afghan Afghani, USD for US Dollar, EUR for Euro).

6. Click Save or Apply. The setting is now active.

What happens after enabling

Once enabled, the following changes take place:

• All transaction forms (invoices, bills, purchases, receipts) will display a Currency field. Users select which currency the transaction is in.
• The Accounts page will show a Default Currency option when creating or editing accounts. You may choose to make accounts single-currency or multi-currency.
• Exchange rates become relevant for converting between currencies. You will need to configure and maintain exchange rates (see "Adding currencies and updating exchange rates").
• Reports will include currency information and may allow filtering or grouping by currency.

Can you disable multi-currency later?

Disabling multi-currency after it is enabled may affect existing transactions. Contact your system administrator or Usystems support before disabling it if you have any transactions in multiple currencies.

Accounting impact

Enabling multi-currency does not immediately create transactions. However:

• Exchange differences arise when transactions are settled in a different currency or at a different rate than originally recorded. Usystems automatically tracks realized and unrealized gains/losses on foreign exchange.
• Accounts may need to be revalued at period-end to reflect current exchange rates (a process sometimes called multi-currency revaluation).
• Financial statements must specify which currency amounts are reported in, and any foreign currency balances must be clearly identified.

Tips & common mistakes

• Set your base currency carefully: Your base currency is typically the currency in which you prepare financial statements. Changing it later is complex.
• Create a currency strategy: Decide which accounts operate in which currencies before you create many transactions. For example, a bank account in USD should always be in USD, not converted from another currency.
• Keep exchange rates current: Exchange rates change daily. Establish a process to update them regularly (manually or via integration).
• Review exchange gains/losses: At period-end, review exchange gain/loss accounts in your trial balance. These are automatically calculated but may need adjustment for strategic transactions.