Multi-company, multi-currency and branches: study sheet

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Zeyto Academy · Advanced · Module 9

Multi-company, multi-currency and branches

Companies and branches, base and transaction currency, exchange rates, 3-decimal currencies, realised differences and GCC VAT.

You will be able to

Explain the difference between a company and a branch and how Zeyto holds each
Post and check a foreign-currency document at the right rate
Compute a realised exchange gain or loss on a settlement
Handle OMR, KWD and BHD three-decimal amounts correctly
State which GCC countries charge VAT and what Zeyto's tax screens cover

Companies and branches: where one set of books ends

A company is a legal entity with its own TRN and statements; a branch is a place inside one company.
Zeyto has no company switcher: use one installation per legal entity.
Branches are never deleted, only set Inactive, and at least one must stay active.
Branch limits on a user restrict documents, POS and reports; Admin is never limited.

Base currency and transaction currency

Books are kept in the base currency; documents can be in any active currency.
Zeyto converts once, at posting, at the rate on the document.
Foreign amount x rate = base amount, with the rate meaning 1 foreign unit in base.
Set the base currency before the first document.

Exchange rates: entering, choosing and trusting them

Rates are per currency per day and are entered by you.
A document takes the newest rate on or before its date; without one you must type it.
Posted documents never change when rates change.
For UAE VAT, FTA guidance expects AED amounts at the Central Bank of the UAE rate for the supply date.

Three-decimal currencies: OMR, KWD and BHD

OMR, KWD and BHD have 1,000 subunits and 3 decimals; most others have 100 and 2.
Decimals must match the Subunit ratio.
Face and books round separately: document currency decimals for the face, base currency decimals for the ledger.
Rounding is half-up after the multiplication.

Realised and unrealised exchange differences

Realised differences arise at settlement and are posted automatically to 4910.
Receipts: more base than booked is a gain. Payments: more base paid than booked is a loss.
Differences up to the threshold (default 0.01) go to Rounding Difference.
Zeyto does not revalue open foreign balances at period end; that is a manual accountant decision.

GCC country settings: VAT and no-VAT countries

Country pre-fills the base currency (while it still holds the old country's currency) and new party country.
UAE 5%, Oman 5%, Bahrain 10%, Saudi Arabia 15%; Qatar and Kuwait have no VAT in force.
Zeyto's VAT return and e-invoicing screens are UAE-specific.
No-VAT country: same books, no tax line.

Foreign currency in daily work: a checklist

Check currency, rate and direction every time.
Approval rules and some report totals do not convert currencies.
Fix mistakes by amending, never by deleting.
Give your accountant a list of open foreign-currency items at period end.

Companies and branches: where one set of books ends: key table

Question	Company	Branch
Own TRN and tax return?	Yes	No, it shares the company's
Own balance sheet and chart of accounts?	Yes	No, same books; you filter by branch
Example	Al Noor Trading LLC	The Deira shop, the Sharjah counter

Base currency and transaction currency: key table

Figure	Currency it is held in
Invoice lines, VAT and grand total as printed	Document (transaction) currency
General ledger entries, VAT ledger, stock values	Base currency

Three-decimal currencies: OMR, KWD and BHD: key table

Currency	Code	Subunit ratio	Decimals
UAE dirham	AED	100	2
Saudi riyal	SAR	100	2
Qatari riyal	QAR	100	2
Omani rial	OMR	1000	3
Kuwaiti dinar	KWD	1000	3
Bahraini dinar	BHD	1000	3

Realised and unrealised exchange differences: key table

Settlement	Base paid or received compared with the book value	Result
Customer receipt	More base received	Gain
Customer receipt	Less base received	Loss
Supplier payment	More base paid	Loss
Supplier payment	Less base paid	Gain

GCC country settings: VAT and no-VAT countries: key table

Country	Currency	Standard VAT (checked 2025 sources)
United Arab Emirates	AED	5%
Saudi Arabia	SAR	15% (raised from 5% in July 2020)
Oman	OMR	5% (since April 2021)
Bahrain	BHD	10% (since 2022)
Qatar	QAR	No VAT in force
Kuwait	KWD	No VAT in force