Currency and Exchange Rate Capabilities in QAD

Posted on: February 18, 2022 | By: David Kwo | QAD Financials

QAD’s currency and exchange rate-related capabilities allow users to define and track various types of relevant currencies and exchange rates, making it simpler to organize and complete cross-currency transactions, track and analyze realized gains and losses, and keep up with the frequency regulations of different entities.

Defining Currencies

Users can create currencies in the Currency Create tab, applying a currency code (an ISO standard code), short description, decimal description (cents, pence, etc.), and rounding method. Users can also mark currencies as active or inactive to ensure irrelevant currencies are not applied to transactions. (define three types of currencies)

Defining Exchange Rate Types

Users can define and edit exchange rates in Exchange Rate Type. Depending on the exchange rate requirement, Exchange Rate Types can be used for typical alternate currency transactions, month end revaluations, consolidation. Once again, the user will be prompted to enter a code and description and mark whether the record is active, as well as indicate whether the system should fall back on an Accounting Exchange rate if the desired type is invalid.

Creating Exchange Rates

Use Exchange Rate Create to create and apply actual exchange rates between two currencies. Enter the currency codes of the desired currencies, the exchange rate type, scale factor, and exchange rate. Users are also prompted to indicate the start and end date of validity for the exchange rate.

Exchange Rate Provider Integration

Exchange Rate Provider Integration provides the capability to source exchange rates from a third party source, such as the internet site OANDA, and populate QAD with those rates based on differing frequency regulations. This functionality saves time by allowing users to avoid manually entering exchange rates one-by-one, and makes it easier to keep up with frequency regulations of different countries.

Realized Gain/Loss Accounts

QAD automatically calculates realized gains and losses due to changing exchange rates between currencies and posts those differences to GL accounts (in terms of both relevant currencies).

Read more about leveraging GL accounts in QAD here.

Read more about QAD financials here.

Next Steps

If you are interested in learning more about automating exchange rates and currencies in QAD and/or maximizing the use of your QAD system, contact us here to find out how we can help you grow your business. You can also email us at info@loganconsulting.com or call (312) 345-8810.



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