How to setup multicurrency

The Multi-Currency feature in POWERpay Payroll allows you to pay employees in several currencies in a payroll run. The payroll will store the figures in both the local currency and the foreign currency in which it was paid.

You can use the option to pay parts of an employee’s remuneration in your local currency and part in a foreign currency, and you can also use the option to run an entire payroll in a foreign currency.

Before using the Multi-Currency feature, you should be familiar with basic payroll processing functions – creating earnings, allowances, deductions, running payrolls, printing registers, pay slips, cheques etc.

The Multi-Currency feature can be used in the following scenarios for employees with a base Net Pay in :

Local Currency - No Splits.
Foreign Currency - No Splits.
Local Currency and a Net Pay Split in Local Currency.
Local Currency and a Net Pay Split in Foreign Currency.
Foreign Currency and a Net Pay Split in Local Currency.
Foreign Currency and a Net Pay Split in Foreign Currency.

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POWERpay>>Maintenance>>System Defaults>>General Codes>>Currencies>>Use Multi-Currency Option

Step 1: Use Multi Currency Options

Description	You MUST turn on (flag as Yes) the Use Multi-Currency Options in order to activate it.
Navigation	POWERpay>>Maintenance>>System Defaults>>General Codes>>Currencies>>Use Multi-Currency Option

POWERpay>>Maintenance>>System Defaults>>General Codes>>Currencies>>Use Multi Currency Options:

Warning:

DO NOT TOGGLE THIS OPTION i.e. do not turn on (flag Yes) the Multi-Currency Options on, run some payrolls, then turn it off (flag No) again, then run some more payrolls and so on.

Step 2: Set up Currencies/Exchange Rates

Description	Insert/edit/delete/view user-defined currencies (Local or Home and Foreign) and their associated exchange rates with an Effective Date for the rate. The payroll can therefore cater for the variations in rates if there are floating currencies. The Exchange Rate is to be interpreted as the rate of conversion between the local currency to the foreign currency.
Responsibility	Payroll System User
Navigation	POWERpay>>Maintenance>>System Defaults>>General Codes>>Currencies>>Currencies

POWERpay>>Maintenance>>System Defaults>>General Codes>>Currencies>>Currencies:

The Currency Code on which you drilled-down on is automatically listed as the Foreign Currency Code.
The screenshot shows an Exchange Rate of $138.00 Jamaican dollars (Home or Local Currency) to $1USD (Foreign Currency).

Step 3: Set up Foreign Currency Payroll Codes

Description	Up to this point, although the Multi Currency Options have been turned on, all your payrolls will still run only in their home currencies. The setup of the Foreign Currency Payroll Codes option is the heart of the multi-currency processing option. In order to process foreign currency amounts: earning, allowance, income type and/or deduction codes for which you wish to use foreign currencies and the foreign currencies in which they are to be paid MUST be defined. Also, you must indicate to the system which pay groups will be using these codes. When these definitions have been created, the amounts entered, from then on, for the chosen payroll codes for the chosen pay groups will be interpreted as being the foreign currency amounts. The system will store these amounts, but will also convert them to the home currency of the pay group and store the converted figures. All Foreign Currency Codes MUST be flagged in order for them to be generated in the Pay Slip. These include all Net Pay Split codes in USD.
Responsibility	Payroll System User
Navigation	POWERpay>>Maintenance>>System Defaults>>General Codes>>Currencies>>Foreign Currency Payroll Codes

POWERpay>>Maintenance>>System Defaults>>General Codes>>Currencies>>Foreign Currency Payroll Codes:

For the EXECUTIVE pay group the amounts entered for DEDUCTION: US NET PAY will be interpreted as UNITED STATES DOLLARS.
EXECUTIVE pay group has a home currency of JMD – Jamaican Dollars. When the payroll is processed, the system will ‘look up’ the exchange rate of USD to JMD that applies to the pay date of the payroll run, and will convert the amounts to JMD.
The payroll will store BOTH the JMD and USD amounts.

Multi Currency Scenarios

Base Net Pay in Local Currency (JMD) - No Splits

Entry ID	Entry Description	Item ID	Item Description	Employee ID	Employee Name	Entry Type	Amount	Payee Lookup	Other	Alternate Rate	Batch No
P	PAY PROFILE	BC	BANK CHANGE	12345	JOHN SMITH	N	0.00	F/Citizens Arima*	0032	0.00	02

* For a Bank Change, select the employee’s Bank/Branch in the Payee Lookup field.

Entry ID	Entry Description	Item ID	Item Description	Employee ID	Employee Name	Entry Type	Amount	Other	Alternate Rate	Batch No
P	PAY PROFILE	AC	ACCOUNT CHANGE	12345	JOHN SMITH	C	0.00	1029383	0.00	02

* The Account Number is stored in the Other field.

Base Net Pay in Foreign Currency (USD) - No Splits

It is important to note that the Payroll is being run in JMD (local currency), so any Base Net Pays will be generated in JMD.

2.1 Convert to USD

To convert the entire JMD Net Pay to a USD Net Pay (foreign currency), create a Net Pay Split and attribute 100% of the JMD Net Pay to the USD Net Pay as shown below.

POWERpay>>Maintenance>>Payroll Setup>>Deductions>>Net Pay Deductions:

The full Net Pay, which would have been generated in JMD, should be allotted to the USD Net Pay Deduction Code.

2.2 Enter Bank/Account for USD

Enter the Banking and Account details for the USD Net Pay (foreign currency).

POWERpay>>Process Payroll>>Cycle Changes:

Bank Change

Entry ID	Entry Description	Item ID	Item Description	Employee ID	Employee Name	Entry Type	Amount	C/Centre/Other	Alternate Rate	Batch No
D	DEDUCTION	USNET	US NET PAY	12345	JOHN SMITH	P	0.00	BNSSJ	0.00	02

* The C/Centre/Other field holds the employee’s Bank/Branch (Payee).

Account Change

Entry ID	Entry Description	Item ID	Item Description	Employee ID	Employee Name	Entry Type	Amount	C/Centre/Other	Alternate Rate	Batch No
D	DEDUCTION	USNET	US NET PAY	12345	JOHN SMITH	A	0.00	365228	0.00	02

2.3 View Pay Slip

View the Pay Slip to confirm the assignment.

POWERpay>>Payroll Reports>>Payroll Reports>>Pay Slips>>Multi Currency Pay Slip:

Base Net Pay in Local Currency (JMD) and a Net Pay Split in Local Currency (JMD)

Since the Payroll is being run in JMD (local currency), the JMD Net Pay Split will be handled as a regular split deduction.

3.1 Net Pay Split

POWERpay>>Process Payroll>>Cycle Changes:

Bank Change

Entry ID	Entry Description	Item ID	Item Description	Employee ID	Employee Name	Entry Type	Amount	C/Centre/Other	Alternate Rate	Batch No
D	DEDUCTION	NP1	NET PAY 1	12345	JOHN SMITH	P	0.00	RBCHO	0.00	02

* The C/Centre/Other field holds the employee’s Bank/Branch (Payee).

Account Change

Entry ID	Entry Description	Item ID	Item Description	Employee ID	Employee Name	Entry Type	Amount	C/Centre/Other	Alternate Rate	Batch No
D	DEDUCTION	NP1	NET PAY 1	12345	JOHN SMITH	A	0.00	1029383	0.00	02

Cycle Amount

Entry ID	Entry Description	Item ID	Item Description	Employee ID	Employee Name	Entry Type	Amount	C/Centre/Other	Alternate Rate	Batch No
D	DEDUCTION	NP1	NET PAY 1	12345	JOHN SMITH	N	500.00	1029383	0.00	02

* The Amount field holds the cycle amount to be deducted each pay cycle.

3.2 Base Net Pay

POWERpay>>Process Payroll>>Cycle Changes:

Bank Change

Entry ID	Entry Description	Item ID	Item Description	Employee ID	Employee Name	Entry Type	Amount	Payee Lookup	Other	Alternate Rate	Batch No
P	PAY PROFILE	BC	BANK CHANGE	12345	JOHN SMITH	N	0.00	F/Citizens Arima	0032	0.00	02

Account Change

Entry ID	Entry Description	Item ID	Item Description	Employee ID	Employee Name	Entry Type	Amount	C/Centre/Other	Alternate Rate	Batch No
P	PAY PROFILE	AC	ACCOUNT CHANGE	12345	JOHN SMITH	C	0.00	1029383	0.00	02

Base Net Pay in Local Currency (JMD) and a Net Pay Split in Foreign Currency (USD)

Firstly, map the appropriate Net Pay Split Code as the Foreign Currency. Step 3: Set up Foreign Currency Payroll Codes

Please note that the setup is different if the Net Pay is in a Foreign Currency as shown below.

4.1 Net Pay Split in Foreign Currency

POWERpay>>Process Payroll>>Cycle Changes:

Bank Change

Entry ID	Entry Description	Item ID	Item Description	Employee ID	Employee Name	Entry Type	Amount	C/Centre/Other	Alternate Rate	Batch No
D	DEDUCTION	USNP1	UN NET PAY 1	12345	JOHN SMITH	P	0.00	BNSSJ	0.00	02

* The C/Centre/Other field holds the employee’s Bank/Branch (Payee).

Account Change

Entry ID	Entry Description	Item ID	Item Description	Employee ID	Employee Name	Entry Type	Amount	C/Centre/Other	Alternate Rate	Batch No
D	DEDUCTION	USNP1	US NET PAY 1	12345	JOHN SMITH	A	0.00	5270023	0.00	02

Cycle Amount

Entry ID	Entry Description	Item ID	Item Description	Employee ID	Employee Name	Entry Type	Amount	C/Centre/Other	Alternate Rate	Batch No
D	DEDUCTION	USNP1	US NET PAY 1	12345	JOHN SMITH	N	720.00	N/A	0.00	02

* The Amount field holds the cycle amount to be deducted each pay cycle.

4.2 Base Net Pay in Local Currency

POWERpay>>Process Payroll>>Cycle Changes:

Bank Change

Entry ID	Entry Description	Item ID	Item Description	Employee ID	Employee Name	Entry Type	Amount	Payee Lookup	Other	Alternate Rate	Batch No
P	PAY PROFILE	BC	BANK CHANGE	12345	JOHN SMITH	N	0.00	BNSPT	0032	0.00	02

Account Change

Entry ID	Entry Description	Item ID	Item Description	Employee ID	Employee Name	Entry Type	Amount	C/Centre/Other	Alternate Rate	Batch No
P	PAY PROFILE	AC	ACCOUNT CHANGE	12345	JOHN SMITH	C	0.00	1029383	0.00	02

Base Net Pay in Foreign Currency (USD) and a Net Pay Split in Local Currency (JMD)

Since the Payroll is being run in JMD, the JMD Net Pay Split will be handled as a regular split deduction.

5.1 Net Pay Split

POWERpay>>Process Payroll>>Cycle Changes:

Bank Change

Entry ID	Entry Description	Item ID	Item Description	Employee ID	Employee Name	Entry Type	Amount	C/Centre/Other	Alternate Rate	Batch No
D	DEDUCTION	NP1	NET PAY 1	12345	JOHN SMITH	P	0.00	RBCHO	0.00	02

* The C/Centre/Other field holds the employee’s Bank/Branch (Payee).

Account Change

Entry ID	Entry Description	Item ID	Item Description	Employee ID	Employee Name	Entry Type	Amount	C/Centre/Other	Alternate Rate	Batch No
D	DEDUCTION	NP1	NET PAY 1	12345	JOHN SMITH	A	0.00	1029383	0.00	02

Cycle Amount

Entry ID	Entry Description	Item ID	Item Description	Employee ID	Employee Name	Entry Type	Amount	C/Centre/Other	Alternate Rate	Batch No
D	DEDUCTION	NP1	NET PAY 1	12345	JOHN SMITH	N	53480.00	N/A	0.00	02

* The Amount field holds the cycle amount to be deducted each pay cycle.

5.2 Base Net Pay in Foreign Currency

Since the Payroll is being run in JMD, any Base Net Pays generated would be in JMD.

Convert to USD

To convert the entire JMD Net Pay to a USD Net Pay, create a Net Pay Split and attribute 100% of the JMD Net Pay to the USD Net Pay:

POWERpay>>Maintenance>>Payroll Setup>>Deductions>>Net Pay Deductions:

The full Net Pay, which would have been generated in JMD, should be allotted to the USD Net Pay Deduction Code.

Enter Bank/Account for USD

Enter the Banking and Account details for the USD Net Pay (foreign currency).

POWERpay>>Process Payroll>>Cycle Changes:

Bank Change

Entry ID	Entry Description	Item ID	Item Description	Employee ID	Employee Name	Entry Type	Amount	C/Centre/Other	Alternate Rate	Batch No
D	DEDUCTION	USNET	US NET PAY	12345	JOHN SMITH	P	0.00	BNSSJ	0.00	02

* The C/Centre/Other field holds the employee’s Bank/Branch (Payee).

Account Change

Entry ID	Entry Description	Item ID	Item Description	Employee ID	Employee Name	Entry Type	Amount	C/Centre/Other	Alternate Rate	Batch No
D	DEDUCTION	USNET	US NET PAY	12345	JOHN SMITH	A	0.00	365228	0.00	02

View Pay Slip

View the Pay Slip to confirm the assignment.

POWERpay>>Payroll Reports>>Payroll Reports>>Pay Slips>>Multi Currency Pay Slip:

VARIATION OF SCENARIO 5

There could be the scenario where the Net Pay Split in Local Currency is a percentage of the Base Net Pay. For example, 50% of the Base Net Pay is in Foreign Currency and 50% is Net Pay Split in Local Currency. Since the Payroll is being run in JMD, the JMD Net Pay Split would be handled as a regular split deduction.

5.1.a Net Pay Split

POWERpay>>Process Payroll>>Cycle Changes:

Bank Change

Entry ID	Entry Description	Item ID	Item Description	Employee ID	Employee Name	Entry Type	Amount	C/Centre/Other	Alternate Rate	Batch No
D	DEDUCTION	NP1	NET PAY 1	12345	JOHN SMITH	P	0.00	RBCHO	0.00	02

* The C/Centre/Other field holds the employee’s Bank/Branch (Payee).

Account Change

Entry ID	Entry Description	Item ID	Item Description	Employee ID	Employee Name	Entry Type	Amount	C/Centre/Other	Alternate Rate	Batch No
D	DEDUCTION	NP1	NET PAY 1	12345	JOHN SMITH	A	0.00	1029383	0.00	02

5.2b Base Net Pay in Foreign Currency

Since the Payroll is being run in JMD, any Base Net Pays generated would be in JMD.

Convert to USD

To convert the half of the JMD Net Pay to a USD Net Pay, create a Net Pay Split and attribute 50% of the JMD Net Pay to the USD Net Pay:

POWERpay>>Maintenance>>Payroll Setup>>Deductions>>Net Pay Deductions:

50% of the Net Pay, which would have been generated in JMD, should be allotted to the USD Net Pay Deduction Code.

Enter Bank/Account for USD

Enter the Banking and Account details for the USD Net Pay (foreign currency).

POWERpay>>Process Payroll>>Cycle Changes:

Bank Change

Entry ID	Entry Description	Item ID	Item Description	Employee ID	Employee Name	Entry Type	Amount	C/Centre/Other	Alternate Rate	Batch No
D	DEDUCTION	USNET	US NET PAY	12345	JOHN SMITH	P	0.00	BNSSJ	0.00	02

* The C/Centre/Other field holds the employee’s Bank/Branch (Payee).

Account Change

Entry ID	Entry Description	Item ID	Item Description	Employee ID	Employee Name	Entry Type	Amount	C/Centre/Other	Alternate Rate	Batch No
D	DEDUCTION	USNET	US NET PAY	12345	JOHN SMITH	A	0.00	365228	0.00	02

View Pay Slip

View the Pay Slip to confirm the assignment.

POWERpay>>Payroll Reports>>Payroll Reports>>Pay Slips>>Multi Currency Pay Slip:

Base Net Pay in Foreign Currency (USD) and Net Pay Split in Foreign Currency (USD)

6.1 Net Pay Split in Foreign Currency

Enter Bank/Account/Cycle Amount for USD

Enter the Banking and Account details for the USD Net Pay (foreign currency).

POWERpay>>Process Payroll>>Cycle Changes:

Bank Change

Entry ID	Entry Description	Item ID	Item Description	Employee ID	Employee Name	Entry Type	Amount	C/Centre/Other	Alternate Rate	Batch No
D	DEDUCTION	USNP1	US NET PAY 1	12345	JOHN SMITH	P	0.00	BNSSJ	0.00	02

* The C/Centre/Other field holds the employee’s Bank/Branch (Payee).

Account Change

Entry ID	Entry Description	Item ID	Item Description	Employee ID	Employee Name	Entry Type	Amount	C/Centre/Other	Alternate Rate	Batch No
D	DEDUCTION	USNP1	US NET PAY 1	12345	JOHN SMITH	A	0.00	5270023	0.00	02

Cycle Amount

Entry ID	Entry Description	Item ID	Item Description	Employee ID	Employee Name	Entry Type	Amount	C/Centre/Other	Alternate Rate	Batch No
D	DEDUCTION	USNP1	US NET PAY 1	12345	JOHN SMITH	N	720.00	N/A	0.00	02

* The Amount field holds the cycle amount to be deducted each pay cycle.

6.2 Base Net Pay in Foreign Currency

Since the Payroll is being run in JMD, any Base Net Pays generated would be in JMD.

Convert to USD

To convert the entire JMD Net Pay to a USD Net Pay, create a Net Pay Split and attribute 100% of the JMD Net Pay to the USD Net Pay:

POWERpay>>Maintenance>>Payroll Setup>>Deductions>>Net Pay Deductions:

The full Net Pay, which would have been generated in JMD, should be allotted to the USD Net Pay Deduction Code.

Enter Bank/Account for USD

Enter the Banking and Account details for the USD Net Pay (foreign currency).

POWERpay>>Process Payroll>>Cycle Changes:

Bank Change

Entry ID	Entry Description	Item ID	Item Description	Employee ID	Employee Name	Entry Type	Amount	C/Centre/Other	Alternate Rate	Batch No
D	DEDUCTION	USNET	US NET PAY	12345	JOHN SMITH	P	0.00	BNSSJ	0.00	02

* The C/Centre/Other field holds the employee’s Bank/Branch (Payee).

Account Change

Entry ID	Entry Description	Item ID	Item Description	Employee ID	Employee Name	Entry Type	Amount	C/Centre/Other	Alternate Rate	Batch No
D	DEDUCTION	USNET	US NET PAY	12345	JOHN SMITH	A	0.00	365228	0.00	02

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How to setup multicurrency

How to setup multicurrency

Overview

Step 1: Use Multi Currency Options

Step 2: Set up Currencies/Exchange Rates

Step 3: Set up Foreign Currency Payroll Codes

Multi Currency Scenarios

Base Net Pay in Local Currency (JMD) - No Splits

Base Net Pay in Foreign Currency (USD) - No Splits

2.1 Convert to USD

2.2 Enter Bank/Account for USD

Bank Change

Account Change

2.3 View Pay Slip

Base Net Pay in Local Currency (JMD) and a Net Pay Split in Local Currency (JMD)

3.1 Net Pay Split

Bank Change

Account Change

Cycle Amount

3.2 Base Net Pay

Bank Change

Account Change

Base Net Pay in Local Currency (JMD) and a Net Pay Split in Foreign Currency (USD)

4.1 Net Pay Split in Foreign Currency

Bank Change

Account Change

Cycle Amount

4.2 Base Net Pay in Local Currency

Bank Change

Account Change

Base Net Pay in Foreign Currency (USD) and a Net Pay Split in Local Currency (JMD)

5.1 Net Pay Split

Bank Change

Account Change

Cycle Amount

5.2 Base Net Pay in Foreign Currency

Convert to USD

Enter Bank/Account for USD

Bank Change

Account Change

View Pay Slip

VARIATION OF SCENARIO 5

5.1.a Net Pay Split

Bank Change

Account Change

5.2b Base Net Pay in Foreign Currency

Convert to USD

Enter Bank/Account for USD

Bank Change

Account Change

View Pay Slip

Base Net Pay in Foreign Currency (USD) and Net Pay Split in Foreign Currency (USD)

6.1 Net Pay Split in Foreign Currency

Enter Bank/Account/Cycle Amount for USD

Bank Change

Account Change

Cycle Amount

6.2 Base Net Pay in Foreign Currency

Convert to USD

Enter Bank/Account for USD

Bank Change

Account Change

Related Articles

How to setup Payroll & Payroll Reports for RBL for Barbados

How to perform Statutory Setup (British Virgin Islands)

How to setup Pensioners for the Jamaica Tax Allowance_2021

How to Adjust the Personal Allowance for Jamaica?

Solution: NHIP Spouse and Child Configuration (Turks and Caicos)