Entering a Purchase Order - Currency Card
- Currency
- Paste Special
Currency register, System module
- Default taken from Contact (Purch. Currency) or Default Base Currency
- The Currency of the Purchase Order (also shown in the footer of the 'Items' card) is shown together with the exchange rate, which you can modify for this particular Purchase Order if necessary. Leave the field blank to use the 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 Purchase Order, the prices of those Items will be converted automatically and immediately using the appropriate exchange rate for the date of the Purchase Order. However, if you change the exchange rate, the prices of the Items already in the Purchase Order will not be updated.
- 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 HansaWorld Enterprise. If appropriate, change the exchange rate to that agreed with the Supplier for this Purchase Order. Ensure that it is correct and not blank before adding Items to the Purchase Order to ensure the correct currency conversion takes place.
- The rates specified here will be copied to any Goods Receipts created from the Purchase Order if you are not using the Use Today's Rate on Goods Receipts option in the Purchase Order Settings setting. They will also be copied to any Purchase Invoices created from the Purchase Order if you are not using the Update Base Cur. when Invoicing and Update Foreign Cur. when Invoicing options in the Account Usage P/L setting in the Purchase Ledger. If you are using these options, the current rates will be used instead of the rates specified here.
- 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, for users outside and not trading with the EU. These are described below.
- Exchange Rates (Dual-Base System)
- In the example shown above, the Currency of the Purchase Order 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 latest record in the Base Currency Rates setting). The illustration shows that GBP0.63 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). JPY122.15 buys USD1.00.
