QAD Financials supports multiple currencies for GL transactions. Currencies are defined at the database level and are available to all domains and entities in the system. A set of ISO currencies is supplied with the system. Multiple types of exchange rates are available, including accounting, budgeting, cash, Intrastat, inventory, tax, statutory, and revaluation. Adjustments to exchange rates are automatically applied wherever the exchange rate is used.

To streamline exchange rate setup, new rates can be derived from existing ones, automatically filling in any missing combinations.

Various rounding methods can be defined and specified for each currency.

Monetary amounts can be expressed in either the domain base currency, a non‑base (foreign) currency, or a statutory currency used for reporting. This three-currency system lets you display a transaction or create a report in any of the defined currencies. This is especially important in environments with high inflation and strong currency fluctuation.

The need for a statutory currency is most likely to arise in a country that is geographically close to a strong currency zone (for example, Mexico and Poland), where the country itself has another local currency. Companies operating in countries close to strong currency zones, such as the Euro and US Dollars, might use the stronger currency as their base currency. However, local auditors and tax controllers can mandate that companies submit their declarations and financial reports in the local currency of the country.

Exchange differences are automatically calculated under all circumstances. Monetary assets and liability accounts that accept foreign currency transactions can be revalued using a Revaluation function in the general ledger; for example, a single customer control account can accept postings in many currencies. Separate revaluation postings are created for each currency in which transactions have been made. For customer and supplier revaluation, the revaluation is entered in separate accounts and automatically reversed in the next period. Financials also lets you simulate what-if revaluation scenarios.

Normally, for foreign currency transactions, the system uses the exchange rate that is valid on the posting date. However, in certain countries, currency conversions for supplier invoices must be based on the invoice date. In addition, you must record the tax amounts on customer invoices in the local currency and convert them using the exchange rate valid at the tax point date. To facilitate these requirements, you can specify at entity level which date the system must use to retrieve the exchange rate for accounts receivable transactions and for accounts payable transactions.

For more information on multiple currencies and exchange rates, see Setting Up Multiple Currencies.