The Currency of the Purchase Invoice (also shown in the footer of the 'Costs' card) is shown together with the exchange rate which can be modified only for this particular Purchase Invoice if necessary. All figures shown in the Purchase Invoice should be in Currency.

Exchange Rates

Default taken from Base Currency Rates setting and/or Exchange Rate register, System module

The current exchange rates for the specified Currency will be entered to this card by Hansa.

Note that, in the case of Purchase Invoices created from Purchase Orders, the exchange rate will be brought in from the Purchase Order if the Update Base Cur when Invoicing and Update Foreign Cur. when Invoicing options in the Account Usage P/L setting are not in use. This is useful if you have agreed an exchange rate with the Supplier at the time of ordering. Otherwise, the current exchange rate will be used, although the prices in Currency will not be changed. This means you will still be charged the agreed price, but the value of the Invoice in the home Currency (and therefore in the Nominal Ledger) will be different to that of the Order.

One of two conversion methods will be used. The Dual-Base system will be useful for companies that have offices in two countries that need to report in both Currencies, for companies operating in countries where there is a second Currency (usually the US Dollar or Euro) in common use in addition to the national one, and for companies in the Euro zone who retain their old national Currency for comparison purposes. The second method is a simple conversion from the foreign Currency to the home Currency, applicable to the majority of worldwide Currency transactions. These are described below.

Exchange Rates (Dual-Base System): In the example shown above, an Invoice has been received in Euros. Base Currency 1 is the home Currency (GBP, Pounds Sterling) and Base Currency 2 is the Euro. The fields on the left show in the form of a ratio the exchange rate between the two base Currencies (taken from the latest record in the Base Currency Rates setting). The illustration shows that GBP 0.63 buys one Euro.; Note that European Monetary Union (EMU) regulations specify that the ratios must always show how many units of the home or foreign Currency can be bought with one Euro.
Exchange Rates (Simple Currency Conversion System): In the case of a simple currency conversion system, the Rate and right-hand Base Currency 1 fields are used to show a simple exchange rate between the foreign and home Currencies. In the example shown below, the home Currency is US Dollars (USD) and the foreign Currency Japanese Yen (JPY). JPY 122.15 buys USD 1.00.

Please click here for further examples.

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