Effects of disabling Multicurrency Management

If not working for a company that does business outside of the United States, it is difficult to understand all of the implications of the Multicurrency Management module. In fact, I would venture to say that it is one of the least understood functions in GP despite it’s obvious name.

For those of you however using the module, you may find that in these times of organizational downsizing and consolidation, Multicurrency may no longer be necessary and perhaps may need to be disabled to prevent entering transactions in other currencies. This is just what happened to a user seeking some advise on the issue on the Microsoft Dynamics GP newsgroup.

Disabling Multicurrency

Let’s start by saying that once transactions have been entered in other currencies, you may no longer use the Multicurrency Access Setup window to disable these currencies for a Dynamics GP company. This would be, if it were possible, my preferred method to prevent a user from entering transactions in other currencies.

The only other option is to disable the module, but this is where the scare factor comes into play because the unknowns. Lets remember that the only condition to enter transactions in GP is to have a functional currency in place, and for companies not requiring multicurrency, the reporting currency is the same as the functional currency.

With this in mind, disabling Multicurrency should not cause any harms (beyond the necessary actions outlined below) to your transaction system. To disable Multicurrency, we will need to go to the Registration window and uncheck the module option.

Since the distribution modules are extremely sensitive to Multicurrency, you will first need to run Check Links on the Multicurrency Setup tables to adjust the system’s transaction tables for the new settings to avoid receiving the following message:

NOTE: RUNNING CHECK LINKS ON THE Multicurrency Setup TABLE WILL CAUSE DYNAMICS GP TO REMOVE ALL CURRENCY RECORDS ASSOCIATED TO AN ITEM CLASS (Item Class Currency Setup table), AN ITEM (Item Currency Master table), AND ALL PRICE LISTS (Item Price List table). IN ADDITION, ANY MULTICURRENCY EXTENDED PRICING PRICE SHEETS ( sopExtPricingPriceSheetHeader table) INFORMATION WILL BE REMOVED. BEFORE DISABLING MULTICURRENCY AND RUNNING THIS PROCEDURE, MAKE SURE YOU HAVE CREATED BACKUPS FOR ALL YOUR COMPANY DATABASES.

Upon deactivating the Multicurrency module, you will still be able to see information in originating and functional currency for transactions previously entered in other currencies, however, you will not be able to record new transactions in other currencies and the system will default to functional currency for these new transactions. All Currency ID fields will be disabled throughout the entire system, as shown here for the Sales Transaction Entry screen, preventing the selection of any currency assigned to the company.













What happens to unposted transactions?

Unposted transactions will need to be deleted and re-entered in functional currency, so it is recommended to post these before hand.

What happens to posted transactions?

If you have open transactions in originating currency in the Payables Management and Receivables Management modules, you wil not be able to apply functional currency to these — unless you are using the Cashbook Management module, a feature available to customers outside of the United States.

If you have performed this operation in the past and you feel I left out something, please feel free to drop your comments and let me know about your experiences.

Until next post!

MG.-
Mariano Gomez, MIS
Maximum Global Business, LLC
http://www.maximumglobalbusiness.com

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2 Responses to Effects of disabling Multicurrency Management

  1. Vaidy says:

    Hi Mariano,I am pretty late in asking this doubt. I understand that the Check Links is going to remove all Item Currency and Item Price List records. If the customer, at some point of time in future, going to use the Multicurrency Feature again, then it will be another whole lot of task (either an import or manual entry) of entering the records again.Instead why don’t we just disable the access to other currencies in that company? Is there any implication or consequences in doing so?ThanksVaidy

  2. Mariano Gomez says:

    Vaidy,Great to have your inquiry! As I mentioned in the post, once transactions have been entered in other currencies for that company, you can no longer us the Multicurrency Access Setup window to disable them. The system will perform a validation and won’t allow you to remove access.Best regards,MG.-Mariano Gomez, MIS, MCPMaximum Global Business, LLChttp://www.maximumglobalbusiness.com

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