Entering a Project Budget - Currency Card
This page describes the fields on the 'Text' card of the Project Budget record. Please follow the links below for descriptions of the other cards:
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- Currency
- Default taken from
Project
The Currency of the Project Budget, also shown in the footer of the 'Items' card. The Currency in a Budget must be the same as that in the related Project.
- 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 Project Budget (or, if the Transaction Date is blank, the current exchange rates). Ensure that these rates are correct before adding Items to the Project Budget to ensure the correct currency conversion takes place.
- If you change the Transaction Date, the exchange rates will change automatically. You can also change the exchange rates in an individual Budget yourself. In both cases, the prices of any Items already in the Budget will not be updated.
- 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)
- If you are using the Dual-Base system, the Base Currency 1 and 2 fields on the left will 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 applying on the Transaction Date).
- If the Currency is not Base Currency 1 or 2, the Rate and right-hand Base Currency 1 or Base Currency 2 fields will show the exchange rate between that Currency and Base Currency 1 or 2.
- 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 will show a simple exchange rate between the foreign and home Currencies.
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The Project Budget register in Standard ERP:
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