Costs

Multi-Currency

93 views 24 February, 2017 3 March, 2017 Valuekeep 0

Valuekeep is ready to handle several currencies simultaneously so that you can record, process and view reports with currency information in several currencies. This functionality is generally designated as “multi-currency support”.

There are some concepts which need to be explained:

Multi-currency concepts Transaction Currency:

This is the currency the user selects when recording a specific transaction/document or business entity and it affects all the currency fields of the entity being created.

Base Currency: It is the application’s standard or “default” currency. It is set only once when subscribing or installing and it cannot be changed. Usually, this currency reflects the subscriber’s nationality. This currency is important since, if there is no indication otherwise, the displayed or requested currency fields are in the base currency. Besides, all stored currency fields, regardless of the transaction currency, are also kept in the base currency along with the corresponding exchange rate and becoming, as such, “frozen” in time. This exchange rate may or may not be available for editing when the transaction takes place; the exchange rate used, which cannot be set by the user, will be the one in force when the transaction takes place.

Reporting Currency: The reporting currency is an alternative currency whose purpose, as the name indicates, is to allow for viewing reports of information in a 3rd currency. Just like the base currency, the reporting currency is set only once when subscribing or installing. All currency values are also converted and kept in this currency, but, unlike with the base currency, the values in the reporting currency are always converted using the current exchange rate which, besides never being directly available for editing, is also not stored.

ISO Symbol: In all situations in which a currency field is displayed or requested, the user can quickly identify the currency with which that field is associated through the displayed ISO symbol.

Multi-currency scenarios

The multi-currency concept appears in several scenarios, such as:

Customer/Supplier or Warranty Contracts: The contracts are always associated to a specific currency to be set by the user. All the contract currency fields (Item costs, Services and document global value) are specified in this currency.

Item: item currency fields (purchase price, average cost, calculated unit cost, etc.) are specified in the base currency;

Asset: the asset has a currency field (Purchase price) that can be specified in any currency the user specifies;

Other Cost: the maximum value associated with the “Other Cost” entity can be specified in any currency the user specifies;

Expense Type: the maximum values associated with an expense type can be specified in any currency the user specifies;

Work Report: in the “Work report” document for a work order, the user cannot see currency fields even though the labor costs are being accounted for and stored for future reports. These values are specified in the base currency;

Expenses Report: the expenses reported associated with a work order can be specified in any currency the user wishes. By indicating an expense type associated with another currency, the values are converted to the document’s currency using the current exchange rate;

Other Costs Report: the costs reported associated with a work order can be specified in any currency the user wishes. By indicating a cost type associated with another currency, the values are converted to the document’s currency using the current exchange rate;

Consumptions Report: when reporting consumptions of materials for a work order, the user cannot see currency fields even though the materials costs are being accounted for and stored for future reports. These values are specified in the base currency.

Employee: The employee has a currency field (Cost/hour) that will be converted when a transaction is created using a different currency in spite of always being specified in the current currency.

Specialty: the specialties have costs that are specified in any currency the user wishes.

Skill: skills must be associated with a specialty so that the “Standard cost” field is implicitly specified in the currency of the associated specialty.

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