Exchange Rates

This support notes are suitable for:

• ABSS Premier

Introduction

This support note is explains how to modify the exchange rate of a foreign currency when using the multicurrency feature of your MYOB Premier or AccountEdge software.

Multicurrency is a feature in MYOB Premier that allows transactions to be entered in currencies other than the local Australian dollar currency. This means that if you deal in International trade or have a bank account in a foreign currency, you can now easily keep track of your transactions. When entering your exchange rates into MYOB, you can update them in the Currency List or at the transaction level.

To update the exchange rate value of a currency, go to Lists and click Currencies. Highlight the currency you need to update and click Edit. Change the value in the Exchange Rate field then click OK.

Alternatively you can enter your exchange rates at the transaction level:

When you enter a Sale or a Purchase, if you choose a customer or supplier that is not local, the Currency Indicator button will display the three letter currency code. By clicking the Currency Indicator button you can enter the exchange rate at the transaction level. You also have the opportunity to update the Currency List.

This means the transaction you are recording will be in Australian Dollars.

This means the transaction you are recording will be in lapanese Yen.

MYOB holds the exchange rate value based on what 1 unit of the currency you are dealing in can buy of Australian Dollars.

Example: If the Australian dollar is currently trading at 0.66 US cents, then the exchange rate that you need to enter into MYOB is 1.515152. This is calculated by Aus$1/ US$0.66. This is easily calculated by using the Currency Calculator.

Note: MYOB enables the Exchange rate to round up to six decimal places.

How do I use the Currency Calculator?

It is important when entering multicurrency transactions that the amount in the local currency and the foreign currency are as accurate as possible. For this reason MYOB calculates the exchange rate to six decimal places and we suggest you use the Currency Calculator to help us do this.

To access this window, go to the Help menu and choose Currency Calculator.

How do I calculate exchange rate values?

In this example, we are finding what the correct Exchange rate value is to enter into MYOB.

The exchange rate figure you have obtained tells you that AUD$1 buys US$0.66. What we then need to enter into MYOB is $1 in the Amount in Local Currency field, $0.66 in the Amount in Foreign Currency field. When you click the ‘Calculate' button next to Exchange Rate, MYOB calculates the value for you.

This tells us that the Exchange that we need to enter into our Currency List is 1.515152.

How do I calculate the local currency?

You can calculate the value of Local Currency based on the Exchange rate.

You need to:

• Calculate what the MYOB exchange rate is as detailed above.
• Enter the amount in Foreign currency eg US$500.
• Click the Calculate button next to the Amount in Local Currency.

This now tells us that US$500 is equal to AUD$757.58

How do I calculate a foreign currency? 

You can calculate the value of a foreign currency, by entering the Exchange Rate and the Local Currency.

• Calculate the MYOB exchange rate as above.
• Enter the Amount in Local Currency. For example, AUD$500.
• Click the Calculate button next to Amount in Foreign Currency.

This tells us that AUD$500 is equal to US$330.