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Entering a Purchase Invoice - Currency Card

Currency
Paste Special    Currency register, System module
Default taken from    Contact record for the Supplier (Purch. Currency) or Default Base Currency
The Currency of the Purchase Invoice (also shown in the footer of the 'Costs' card) is shown together with the exchange rate that you can modify in an individual Purchase Invoice 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).

All figures that you enter in the Purchase Invoice should be in the specified Currency.

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 of the Purchase Invoice.

If you change the Transaction Date (either directly or by changing the Invoice Date), the exchange rates will change automatically.You can also change the exchange rates in an individual Invoice yourself. 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 the case of a Purchase Invoice created from a Purchase Order, the exchange rate will be brought in 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 and you have selected From Purchase Order as the Purchase Invoice Rate option in the Purchase Invoice Settings setting. This is useful if you have agreed an exchange rate with the Supplier at the time of ordering. Otherwise, the exchange rate for the Transaction Date 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 your 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 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 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.

You can usually change the exchange rates in an individual Invoice. If you wish to prevent this, 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.

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