linking two accounts Receivable to balance data integrity checks

Hey there,

When setting up from our last accounting software we had two accounts receivable, one in cad $ and one in us $, as well as three accounts payable, the extra being for GBP. When linking my accounts receivable to my customers for the linked account, it only allows me to choose one, even though I will need both in order to balance it properly and same thing for A/P.

Anyone know a solution? 

Thanks

  • 0
    Sage 50 always posts to the G/L in CAD with foreign amounts posting based on the used currency exchange rate. The program does not use more than one A/R or A/P. When you activate multi-currency, you will see the breakdown in the Customer Aged or Vendor Aged report if you tell it to Show Foreign Amounts.

    When you show Foreign Amounts you will see the currency of each customer/vendor, the dollar amount in that currency and totals at the bottom of the report in each currency. If your turn off Foreign Currency, the amounts shown are all in CAD.
  • 0 in reply to Richard S. Ridings
    That's not the issue, I need to basically total my two accounts receivable, which both are seperate bank accounts for simplicity and are all converted into CAD regardless of their respective currency, into one accounts receviable total in order for the data integrity to make sense. To be clear, all values for when setting up the account ARE in CAD anf the two accounts just need to be totaled - I ahve tried using a sub-group total but it will not let me link that account or even bring up a total value.

    Please let me know if there is any solution,

    Thanks
  • 0 in reply to khay4

    khay4

    In your original post, you asked how to link two Accounts Receivable G/L accounts on the balance sheet to the Accounts Receivable module based on currency.  As I explained, Sage 50 does not allow users to use more than one Accounts Receivable account (QuickBooks does that internally when you set up currencies, but Sage 50 does not handle currencies reporting in the same manner).  That account is not based on currency because all entries are posted in CAD.  The customer/vendor setup determines the currency used in the transaction so to find out how much is owing in each currency, you must activate it on the Customer or Vendor Aged reports.  That is the answer to your first post.

    What I did not mention is that the bank account used per currency is dependent on the Linked Accounts setup for Accounts Receivable.  If you specifically set up a foreign bank account for a specific currency and you can link it in the Accounts Receivable Linked Accounts setup so that when you switch to a customer of that currency, the money will move in/out of that account.  Each currency can have it's own account or each currency can use the home currency account (I assume CAD in your case).  I do not believe you can use the USD account to deposit GBP.  I did not mention this because I did not think it was relevant to your issue of linking the Accounts Receivable account.

    Now it appears you are asking a completely different question: how to get the balance sheet to sum the two Accounts Receivable accounts you set up based on currencies but set up in CAD.

    Based on your description you have done something like this on your balance sheet:

    1200 Accounts Receivable - CAD     Subgroup Account

    1205 Accounts Receivable - USD     Subgroup Account

    1209 Total Accounts Receivable       Subgroup Total

    You can do this if you like but a Subgroup Total is a non-postable account and is only available for formatting the financials for display and printout.  Only one account of 1200 or 1205 can be linked to the Accounts Receivable module (same as in my first answer).  Therefore only the one account can be updated by the Accounts Receivable module automatically, regardless of currency.  The other would have to be updated manually.  I do not think you can give yourself the display on the balance sheet of the information you are looking for, if that is what you are trying to accomplish.  You can only get the information on the A/R module reports or the Trial Balance.

    If this does not answer your question, please describe in more detail what you are trying to accomplish, possibly with some images from your file and maybe someone can come up with a solution for you.  You also might try opening the sample file and looking around.  It already has currencies set up and you can post some entries in there to see the effect on the reporting.  You might wish to take a copy of the file before posting because there is a limit to the number of entries you can make.

    Hope this helps more

  • 0 in reply to Richard S. Ridings
    Thanks for the Reply Richard,

    Sorry for the lack of clarity in the question. Yes I have had no issue setting up vendors/ customers in different currencies, so that is not an issue, but thanks for the reassurance.

    I have set up the account like you have shown previously and was hoping that i would be able to use the total to link for the data integrity check and that is where the problem still arises. I will need the sum of both those accounts to equal (or close enough to with F/X differences) the Customers Owing. If these do not match on the data integrity will an issue arise, or will I be able to proceed with the system just showing the difference when i check data integrity?
  • 0 in reply to khay4
    I really do not understand what you are trying to accomplish. Can you describe to me what is happening with the amounts owing by Paramount in the sample file vs. the amounts owing by Ashburton Reinforcing and what is wrong with the display of the information on the Balance sheet?

    If you are in the middle of setup as it seems from another of your posts, then you are setting up customers who might be of different currencies. Let's call them Customer CAD and Customer USD.

    Customer CAD owes you one invoice as of your Sage 50 start date of $1000.
    Customer USD owes you one invoice as of your Sage 50 start date of US$500 that was originally sold to them when the exchange rate was 1.2. Therefore US$500 * 1.2 = CA$600.

    Therefore account 1200 Accounts Receivable on the balance sheet would have a total of CA$1600 in your setup.

    One account handles both currencies.

    When you receive the money from Customer USD you will receive US$500. In CAD, CA$600 will be removed from the Accounts Receivable account. There is more to it with if there is a new exchange rate based receipt date but that does not have a bearing on the amount put into and removed from Accounts Receivable, only what is put in the bank in CAD (still US$500 put in the US bank).
  • 0 in reply to Richard S. Ridings
    Richard thanks for your support,

    So I am starting up opening balances from my companies last year end. In their year end they have two accounts receivable, Trade accounts receivable - CDN of $25,000 and and Trade A/R - USD $600,000. Both of these dollar figures are in CAD (the USD A/R's value was calculated by the subledger and then converted using the F/X rate on Dec. 31). These values need to be exact in order to balance their year end retained earnings, so now that I have entered the customers owing, the value does not add up to these number as I can only link one of these accounts, in this case it would be $625,000 yet only linking one account would mean in the data integrity my A/R is only 600,000 (or 25,000 but I will use the higher value). So specifically what I am asking is if there is a way to combine those account in a sub-total manner to combine the values while still keeping them as seperate accounts, or if the only way to do so is by combining both totals into one account.

    I hope that helps clarify my question and thanks for the support
  • 0 in reply to khay4
    Only one account can be used with a total opening balance of $625000. Sage 50 has no need for a second one. Even if you wish to show the amount for each currency on the balance sheet the program just cannot do it. You can use the Trail Balance or the Customer Aged report to show you the totals of each currency.

    Does the Customer Aged report show the proper balance per currency right now (assuming you fix the amount entered incorrectly)?

    Did the sample file help in any way when you looked at it and posted a couple of entries?
  • 0 in reply to Richard S. Ridings
    Thanks Richard,

    I already proceeded to merge the accounts together in order to balance properly. It is unfortunate the program does not have the capability to do so but I will proceed forward using that method.

    I did not check the customer aged report and have just restored my company from a back up and am now entering all my customers and vendors and their amounts owing again, as I will have to make every rate the same as the rate used in conversion of the A/P and A/R subledgers (which i was using the daily rate before not the year end rate so it would never balance).

    I did not bother with the sample file after realising that the program is incapable or performing my task and will now enter the customers and vendors again in order to keep it as simple as possible for this program.

    thanks for your help though, much appreciated!