Each routine that defaults an exchange rate also provides the option
to override the default.For each country you create in the Country Settings, you must specify both an actual and an estimated exchange rate. For your domestic country, you specify 1.000000 (an even exchange rate) for both. If using the Foreign Processing feature, you must also specify both an actual and an estimated exchange rate for each foreign country with which you do business. To set up exchange rates in your system, use the following files:
For each country in which you do business, you must specify an exchange rate at the following fields:
Actual Exchange Rate - Use this field to specify the actual exchange rate for the selected country. We recommend you update this field regularly with the latest information available.
Estimated Exchange Rate - use this field in the event the exchange rate for a country changes often. A fluctuating exchange rate can create inconsistency in your report data. By entering an estimated exchange rate that averages out the fluctuations, you can maintain consistency in reporting. If the country's exchange rate is constant, or if you don't want to use estimated exchange rates in your system, enter the same rate into both the Actual and Estimated exchange rate fields.
Use the Update Exchange Rate field in the Vendor Settings to specify how you want the system to use the actual and estimated exchange rates specified for each foreign vendor. You have the following options:
If you check the box at the Update Exchange Rate field, the system defaults the estimated exchange rate in purchasing routines only, and defaults the actual exchange rate during merchandise receiving, AP billing, and check processing. If prices of items are always dependent on the current exchange rate, this method provides more accurate product costs for AP billing than the second method.
If you leave the box blank at the Update Exchange Rate field, the system defaults the estimated exchange rate for the entire merchandise processing cycle, from purchase order entry to check processing. If you purchase imported items at a fixed rate, this method should be sufficient for your needs.
Each routine that defaults an exchange rate also provides the option
to override the default.
STORIS uses the following calculation to convert foreign currency amounts to domestic figures:
Foreign Cost x Exchange Rate = Domestic Cost