Multi-Company & Currency within a single NAV Company

@simon

Hi there,

We currently operate 10 separate companies (all part of the same group) within 1 NAV company, utilising Dimension 1 as the company identifier and some bespoke work for handling VAT returns.

The reason for this is all operations and administration is centralised and handled by the same departments. Logging into multiple companies or constantly switching would not be efficient.

We are now in the process of opening subsidiaries over europe and want to maintain the system we currently use.

However this brings about an issue as far as currency goes, we want to be able to create fiscal reports from the G/L and analyse stock valuation in the local countries currency. The primary currency in the system is currently GBP.

G/L isn't so bad, we have considered adding a Currency Code and Foreign Amount field to the G/L Entry table (and any tables that might draw from this such as the analysis entry table).

Stock ledger is where we have the issue as we will want to view stock valuation in the relative currency and using the corresponding exchange rate (in fact we fix our exchange rates every 6 months). Has anyone had any experience of this or aware of a system that could be utilised in this instance.

We considered ACY but we will be operating in more than one country and with more than one currency.

Thanks and regards

Simon

jannestig

HI simon I am doing this myself at the moment for a UK group company that has a group reporting currency of USD.

I can't see you getting away with this without creating new companies, as well as each company having localisation requirements and DB, otherwise you will have a large amount of modifications in your environment.

If you are using the RTC it can be annoying but its fairly easy to change comapnies in the Classic client

The local Currency of the entity should always be the LCY and if depending upon you want to see the GBP based on a EURO group or see it as USD based on a US group structuring then the USD
should be the ACY.

This is also true as any VAT or Intrastat reports required should be in the currency of that country. Also the french are annoying in that any fench company must use a regulated numbering series fro their COA

When you come to consolidate you will select which currency you want the consolidation entries to come across in. Here you usually set a starndard month end closing rate per currency to consolidate in updating the GL entries for ACY to give you a preview of what should be posted.

Checking the stock accounts should be no issue as it will show LCY and ACY values.

What you have mentioned about adding a FCY currency code to the GL already exists in the Swiss Version of NAV.

SO their GL will Show 3 values LCY = CHF ACY = USD and FCY = EURO, if no currency code is selected for the account FCY values default to ACY.

Hope that helps

FDickschat

We have built a multi country DB for DE (Base), BE, GB, FR, ES, NL with IT coming up.

But we still have used separate NAV companies for these. European countries have very different ideas about CoA, VAT, Intrastat, Payment Discounts, you name it. It is possible to add all the code into 1 DB but doing it all in one company will be much harder to do, esp. because of CoA, VAT and local currencies.

FR and ES have fixed CoAs, you have to use them, VAT in ES and IT is very different to the others (required manweeks of programming to analyse the code and integrate it), DE, FR, BE and GB are not so different just need different setup and some small changes. FR and ES have a very special payment module which might not be necessary. NL was easiest to integrate.

@simon

Based on your responses am now looking at using separate companies within a single DB.

Thanks.

ssingla

@simon wrote:

Based on your responses am now looking at using separate companies within a single DB.

Thanks.

That is going to be a wise decision. I am not aware of EU countries legal requirement so I didn't contributed in the discussion so far but prima-facie multi-country, cross continent companies in single company identified by dimension values seems to be a headache to manage.