Multi-Currency is used when purchase orders are sent to other countries with different currencies (e.g. UK order to Republic of Ireland). The functionality allows reconciliation of invoices in both currencies.
Each supplier can have a different currency assigned; only one currency can be assigned per supplier.
For the purposes of all management reports every value is reconciled back to the base (organisation) currency using the defined exchange rate.
The following document explains set up of multi-currency and how to use it.
To have this functionality enabled please contact your Relationship Manager at Fourth.
Setting up Multi-Currency
Once multi-currency has been enabled follow the below steps.
Set the Base Currency
Declare the base currency by going to the Currency link in Enterprise.
System Administration> General Admin> Currency> Add Base Currency> Choose currency from drop down> Click Next
Fig 1 Setting up the Base Currency
- Click on ‘Add Base Currency’. A pop-up will appear with a drop-down option for the currencies.
- Choose the relevant currency and then click next and then finish.
Adding Currencies to the Organisation
Once base currency has been established create additional currencies.
System Administration> General Admin> Currency> Add New Currency> Choose currency from drop down> Add Exchange rate (relative to base currency)> Click Next.
NOTE: Adding new currencies differs from the base currency as an exchange rate is required. The exchange rate should be the number of the chosen currency that makes 1 of the base currency.
Fig 2 Setting up a New Currency
- Click on ‘add base currency’. A pop-up will appear with a drop-down option for the currencies.
- Choose the relevant currency.
- In the example above in Fig.2 the exchange rate for the chosen currency is 1.12 Euros to 1 GBP:
- This exchange rate needs to be updated as required.
Changing the Supplier Currency
Each additional exchange rate should be assigned against the relevant supplier.
Path: Supplier Management> Click Supplier> Edit Details> Select Drop Down> Save.
Fig 3 Supplier Details with the Currency Drop-down List
- Each supplier can have 1 currency assigned either base or additional.
- Select the supplier, edit details and change the currency in the drop down. Save the changes and then update the shipping information to site
Updating the Currency
Path: System Administration> General Admin> Currency> Select currency to update> Exchange rates> Add New Exchange Rate> Update Exchange rate value> Select effective from date> Click Next.
Fig 4 shows updating the exchange rates
- Exchange rates will need to be updated regularly.
- This is a manual process but can be scheduled for the future.
NOTE: Only purchase orders raised on or after the effective date of the exchange rate update will have the updated exchange rate.
Raising an Order
Path: Home> Create New Order> Select order type> Create order.
Fig 5 shows placing an order with multi-currency
- Raise the order as normal on the order page.
- The cost prices will appear in the exchange rate, select the calculator to show the value in the base currency.
On the following page send the order as normal.
NOTE: The order will be received by the supplier in the additional currency.
Receiving Multi -Currency Deliveries
Path: Stock Management> Pending> Select delivery> Reconcile and approve delivery/ invoice as normal.
Fig 6 shows receiving a delivery with multi-currency
- When the delivery is received there is the option of reconciling the invoice in base or additional currency.
- Change the currency to reconcile the invoice if required using the Show currency radio button.
- Approve and mark for export as normal.