How to manage currencies in VOGSY

Operating internationally means dealing with different currencies for projects, intercompany transactions, invoicing, purchases (AR/AP) and employee costs. VOGSY is built to handle this complexity, allowing you to manage operations locally while reporting globally.

This article explains how VOGSY's multi-currency system works and how to set it up.

VOGSY manages currencies at several different levels, from the entire system down to a single employee.

1. The Base Currency (System-Wide)
   The base currency is the primary currency for your entire organization, typically used by the top-level holding company. All high-level reporting for revenue, costs, and margins is consolidated into this currency.

• How to set it: Go to the Companies/Departments function in the back office. Select your top-level (holding) company and set its currency. This becomes the system's base currency.

2. Local Currency (Per Company)
Each subsidiary company can have its own local currency for its daily operations.

• How to set it: In the same Companies/Departments function, select a subsidiary and set its specific currency. Any projects created for this company will automatically use this as their local currency. All project-level reporting will be available in this local currency.

3. Invoice Currency (Per Project)
You can invoice a client in a currency that is different from your company's local currency.

• How to set it: Within a specific project's record, you can designate the currency that will be used for that customer's invoices.

4. Employee Currency (Per Person)
An employee's cost rate, sales rate, and intercompany rate are determined by the currency of the department they belong to.

• How to manage it: When an employee moves to a department in a different country, you must update their profile to reflect the new local currency and corresponding rates.

To keep your financial data accurate, you must manage the currencies themselves and their exchange rates.

• Where to find it: Go to the Currencies function in VOGSY’s back office. This is where you can add or manage the list of currencies your business uses.

• Keeping Rates Updated: In this same section, you will keep your exchange rates current. To simplify this process, VOGSY can connect to the exchange rate service Fixer to automate updates.