Entering a Contract - Currency Card
This page describes the fields on the 'Currency' card of the Contract record. Please follow the links below for descriptions of the other cards:
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- 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 Contract (also shown in the footer of the 'Items' card) is shown together with the exchange rate which you can change in a particular Contract 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 need to change the Currency after adding Items to the Contract, use the 'Change Contract Currency' Maintenance function. This will change the Currency and Exchange Rate and convert all prices in the Contract to the new Currency. If you change the Currency in a Contract yourself, the prices of the Items already in the Contract will not be converted.
- 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 Contract Date. If you change the Contract Date, the exchange rates will change automatically. Ensure the exchange rates are correct before adding Items to the Contract to ensure the correct currency conversion takes place. If you change the exchange rates after adding Items to the Contract, the prices of those Items will not be updated.
- You can change the exchange rates in any Invoices that you create from the Contract, since these Invoices will not be marked as OK automatically. After entering the new exchange rates in an Invoice, select 'Update Currency Price List Items' from the Operations menu (Windows/Mac OS X) or Tools menu (iOS/Android) to re-convert the prices of the Items in the Invoice.
- 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 Contract 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 Contract Date). 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 illustrated below, the home Currency is US Dollars (USD) and the foreign Currency Japanese Yen (JPY). JPY 122.15 buys USD 1.00.
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The Contract register in Standard ERP:
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