Foreign Currency Purchase Orders

Owned by Craig Mitchell
Last updated: Jul 19, 2018

Entry Of Purchase Order

 


Select the Currency

Note the Currency in the bottom right hand corner. This comes from the Creditor's Masterfile.
You next click on the … box next to the F/C Rate.




If the rate is too old, Add a new one and select it instead.




The exchange rate has been added to the purchase order.

Now add the purchase order lines.


Note that the Cost on the first line is AUD, the second line is DKK. Note that these items had the incorrect Last Cost (was in DKK, should have been AUD), hence we had to manually adjust the pricing.

The stock module is always in AUD.



The purchase order showing both AUD & DKK.


Print the Purchase Order

With the purchase order complete we can now send it to the supplier.

Remember to tick the F/Cur box !




The Purchase Order in DKK.

The Purchase Order in AUD.

 

Receipting of Goods.


This is no different to a normal Goods Receipt.

You will note the Amount is in AUD, and the Foreign currency is also shown.

Posting F/C Supplier Invoice

As we are posting in F/C, we must first reverse the Delivery Docket.
Then from Invoice Entry / Release PO


In this case the F/C Amount on the right hand side of the screen matches the invoice.
Go ahead and Post the invoice. This will place the goods back into stock. You will be asked for the F/C amount, enter that.


Payment of Foreign Currency Invoice.


This is done from Payments / Journals - Foreign Payments.
Enter the Creditor Code.
Then enter the Currency, once you do that the outstanding invoices will appear.


Now ensure that the Bank account is correct (AC1110) and enter the F/C payment against the payment box. Select the invoice and apply that amount against it.

Now you can enter the Local currency amount. In this case we have a $15 fee with OFX. Add that as well.



If you hit 'Calc'. The local currency will become the calculation of the F/C times the Exchange rate. So don't.
Go ahead and Post this Invoice.



So what just happened.

  • The Bank Account was Debited with the $991.70.
  • The Stock was posted at the Original rate (DKK x the Exchange rate) in AUD.
  • The difference went to AY42000, Forex Gain / Loss.
  • We DID NOT adjust the cost of the stock to account for the extra $15.00 in fees. To do that we have a separate procedure.




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