Defining a Functional Currency Type

Functional Currency is the currency type in which an organization performs its day-to-day business. Aptify allows the definition of one functional currency per Organizations record. Transactions created by employees linked to a particular organization use that organization's Functional Currency. This includes Orders, Payments, and Scheduled Transactions.

Each Organization has its own Functional Currency, defined on the Organizations record's Accounting tab.

Note that if your system will use only one functional currency (or the majority of the transactions and organizations will use the same functional currency), your administrator can set the default value for the Organizations entity's FunctionalCurrencyTypeID attribute to equal the ID of that currency type. For example, in the standard Aptify installation, the FunctionalCurrencyTypeID has a default value of 2 (which corresponds to US Dollars). If US Dollars is not your system's primary functional currency, you administrator can modify the default value as needed. This will automatically assign the default to new Organizations records (existing records will need to be modified manually).

Follow these steps to specify a functional currency for an organization:

1. Open the appropriate record in the Organizations service.
2. Click the Accounting tab.
3. Specify the organization's functional currency in the Functional Currency field.
   • This field links to the Currency Types service.
      
4. Select an Exchange Rate Gain Account and an Exchange Rate Loss Account that the organization will use to track any gains or losses recognized due to exchange rate fluctuations involving this currency.
   • These accounts can also be specified on a system-wide basis on a Currency Types record (see Creating a Currency Types Record for details).
   • Note that the accounts specified on an Organizations record take precedence over the accounts specified on the Currency Types record for transactions conducted by that organization. However, if you leave these fields blank on an Organizations record, then the organization's foreign currency transactions will use the accounts specified on the Currency Types record.
      
5. If the organization is willing to accept payment in a currency that is different from the currency specified on an order, select a Conversion Adjustment Account.
   • When paying for an order in a currency that is different from the order's, the system automatically calculates the corresponding payment amount in the other currency based on the latest spot rates. However, if an organization chooses to accept another payment amount as full payment for the specified item, any discrepancy between the calculated payment amount and the actual payment amount generates a general ledger (GL) entry for this Conversion Adjustment Account.
   • See Recording a Payment in a Different Currency than the Order for more information.
     
6. Save and close the Organizations record.