Language:


Entering an Invoice - Currency Card

This page describes the fields on the 'Currency' card of the Invoice record. Please follow the links below for descriptions of the other cards:
---

Currency
Paste Special    Currency register, System module
Default taken from    Contact record for the Customer (Sales Currency) or Default Base Currency
The Currency of the Invoice (also shown in the footer of the 'Items' card) is shown together with the exchange rate, which you can change in an individual Invoice if necessary. Leave the field blank to use your home Currency (unless you have set a Default Base Currency, in which case this will be offered as a default and should be treated as your home Currency).

If you change the Currency after adding Items to the Invoice, the prices of those Items will not be recalculated automatically. You will need to force a recalculation using the 'Update Currency Price List Items' function on the Operations menu (Windows/Mac OS X) or Tools menu (iOS/Android).

Exchange Rates
Default taken from    Base Currency Rates setting and/or Exchange Rate register, System module
By default, these fields will display the exchange rates for the specified Currency on the Transaction Date.

If you change the Transaction Date (either directly or by changing the Invoice Date), the exchange rates will change automatically. The prices of any Items already in the Invoice will be updated automatically and immediately, providing you are using the Update Prices on records with Currency when changing Dates option in the Item Settings setting in the Sales Ledger.

You can also change the exchange rates in an individual Invoice yourself. In this case, the prices of any Items already in the Invoice will not be updated so, you will need to use the 'Update Currency Price List Items' function on the Operations menu (Windows/Mac OS X) or Tools menu (iOS/Android) to update all prices in the Invoice.

If you wish to prevent the changing of exchange rates, select the Prevent Base Rate Changes and/or Prevent Foreign Rate Changes options in each Currency record. If you are using these options, the exchange rates in an Invoice will still be changed if you change the Transaction Date.

In an Invoice in Currency created from an Order or Delivery, the exchange rates shown here will be copied from the related Order, if you are not using the Update Base Currency when Invoicing and Update Foreign Currency when Invoicing options in the Account Usage S/L setting and you have selected “From Order” as the Invoice Rate option in the Sales Invoice Settings setting. Otherwise, the Base and Exchange Rates for the Transaction Date will be used, although the prices in Currency of the Items will not be changed. This means the Customer will still be charged the agreed price, but the value of the Invoice in your home Currency (and therefore in the Nominal Ledger) will be different to that of the Order. If you want to update the pricing in the Invoice to reflect new Base and Exchange Rates (and therefore to maintain the original value in your home Currency in the Nominal Ledger), enter the correct rates and then select 'Update Currency Price List Items' from the Operations menu.

One of two conversion methods will be used to calculate prices in Currency. 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 illustrated above, the Currency of the Invoice is the Euro. 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 record in the Base Currency Rates setting that applies on the Transaction Date). 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 illustrated below, the home Currency is US Dollars (USD) and the foreign Currency Japanese Yen (JPY). JPY 122.15 buys USD 1.00.

Please refer here for more examples.
---

The Invoice register in Standard ERP:

Go back to: