Currency Exchange Rate fluctuations mean that the value of a Sales Order may change in the time between the Order being entered into the accounts and the Sales Invoice being generated.

The Recalculation of Currency Values feature enables you to revalue the Order at the point of Invoice to take into account the latest Currency Exchange rate.

If you wish to use this feature, there are three different methods available (see below). You may change the method in use at any time providing no one else is working with batched Sales Orders at that time.

This menu offers 4 choices:

No Recalculation on conversion to Invoice

This will disable the Recalculation.

Recalculate home values from foreign currency

The foreign currency values on the invoice will remain unchanged from those entered and printed on the order. The Home currency values will be recalculated in line with the Exchange Rate chosen at the time the invoice is generated.

2nd base values will be recalculated in line with the recalculated Home values.

Recalculate foreign currency values from home values

The Home currency values on the invoice will remain unchanged from those entered on the order. 2nd base values will be unchanged. The foreign currency values will be recalculated in line with the Exchange Rate chosen at the time the invoice is generated.

Using this option will result in a foreign currency invoice having a different foreign currency value from the original order.

Recalculate according to transaction option set on entry

This option will enable the recalculation of either the Home or the Currency values; the processing used depends on the transaction option selected when the Sales Order was entered.

If Enter Currency Prices was ticked, then:

The foreign currency values would be fixed.

The Home currency values (and 2nd base) would be recalculated.

If Enter Currency Prices was not ticked, then:

The Home values (and 2nd base) would be fixed.

The foreign currency values would be recalculated.

If you select any of the above options which involves a Recalculation, you will be prevented from being able to Print Invoice without also selecting to Update Invoice.

You may change the active option at any time as long as there is no one else using the SOP batch.

When processing invoices from the batch, the revaluation of Sales Orders will depend on the Recalculation option chosen in System Control and possibly on the status of the transaction option Enter Currency Prices as explained above.

In the Sales Orders Batch Selection window, there is a menu which defaults to All Currencies.

Clicking this menu enables you to select a Specific Currency.

The currency search button will display a list of the available Trading Currencies. Double click on the currency that you wish to select.

The currency symbol of the selected currency will be displayed and the Revaluation Rate will be shown.

The Revaluation Rate search button will display a list of rates available for the selected currency or you can amend the displayed rate.

The currency should be selected before the revaluation rate is selected or amended.

Whatever rate is in the field when the batch list window is displayed, will be carried to the Process Batch window. The revaluation rate will be used for all the transactions.

If a System Option involving Revaluation was selected:

"You have selected transactions with mixed currencies/rate types. The software will automatically revalue these transactions based on latest/date sensitive exchange rates - are you sure - YES/NO."

YES - will take you to the Sales Order Process Batch window (see below).

NO - will take you back to the Process Sales Order Batch window, with a message:

"Please use the Currency selection pull down on the search window to select Orders of a common Currency. OK"

OK unlocks any locking that had been done, clears the list in the Process Sales Order Batch window and returns you to the search window. The Currency selection pull down will be shown open. You can close this window without selecting a currency rate and quit the batch processing.

If a System Option NOT involving Revaluation was selected:

There are three different routes by which you may have reached this window:

You will not see any fields relating to revaluation.
There will be no Revaluation of Invoice values.

Revalue Invoice Values - If you untick this option, the fields below it will not be displayed.

Currency Symbol - displayed only, cannot be edited.

Suggested Currency Code - pulled through from the Batch selection window.

You may change this by using the search button to display other rate codes of the same currency symbol and type.

Suggested Exchange Rate - pulled through from the Batch selection window. This may be overwritten with a spot rate.

You will see:

Revalue Invoice Values (as picture above) but with no other fields being displayed. A displayed message will state:

"Exchange rates for revaluation will be applied automatically according to your System Options set."

If you untick this option, then the message will not be displayed.

If the No Recalculation option has been selected then the system will process the batch in the normal way and invoice values will remain unchanged.

If a Recalculation option with Specific Currency has been selected:

The revised rate selected will be compared with the original rate used on the Order Headers.

The current 2nd Base rate will be compared with the 2nd base exchange rate used on the Order Headers.

If the rates are different, either the Foreign or Home values (according to System Option selected) will be recalculated on a line by line basis.

If any Home values are changed, 2nd base will always be recalculated as well.

If the Home values are not changed, a second base value equal to the new currency value will be posted.

Before printing and posting invoices, the system will warn you:

"Exchange Rate has changed since Order Entry, some values will be recalculated. OK? Yes/No.

Yes will proceed with print and update.

No will return you to the Sales Order Batch Options window.

If a Recalculation option with All Currencies has been selected:

The system will identify, from the System Options, whether to use Latest or Date Sensitive exchange rates and then it will select the appropriate current exchange rate for each transaction.

The current exchange rate will be compared to the rate on the Order Header.

The software will also compare the current 2nd Base rate to the 2nd Base exchange rate used on the Order Headers.

If the rates are different, either the foreign, 2nd base or Home values (according to the System Option selected) will be recalculated on a line by line basis.

If any Home values are changed, 2nd base will always be recalculated as well.

Before printing and posting the invoices, the system will warn you:

"Exchange Rate has changed since Order Entry, some values will be recalculated. OK ? Yes/No".

Yes will proceed with print and update.

No will return you to the Sales Order Batch Options window.

If you are using Date Sensitive exchange rates, you will be offered the exchange rate appropriate to the Tax Point Date on the Process Batch window. Editing the Tax Point Date may produce a different rate.

If you are not using Date Sensitive rates then the current exchange rate for the currency will be offered.

For foreign currency exchange rates, the system will only look at either the Direct or the Triangulated rate table for this information, according to the selection made on the Order Header. It will not "cross" over rate tables.

Triangulated Rates

We apply the same logic with regard to protecting fixed EMU rates from being edited as we employ in SOP transaction entry windows. This logic applies only to the use of triangulated rates. This is to ensure that EMU currency companies cannot change the fixed triangulated rates between themselves and other EMU countries or between their own currency and the Euro.

Affect On 2nd Base Values:

The 2nd base values may be changed because:

If so, the 2nd base value posted (currency invoices only) needs to be revised.

This may be either due to a part-invoice of an order providing a new value or the Home value changing as a result of an exchange rate variation.

If the Recalculation option is selected, this will result in the Home value being changed and the 2nd base values will be changed in line with Home.

If the exchange rate being used in the re-valuation is a Triangulated rate, then the second base rate to be used will be selected from the rate entered on the Batch search window, otherwise the 2nd base rate used will either be: Date Sensitive or Current.

This will be dependant on the System Options selected. You will not have the option to override these selected rates.

Impact on Audit Trails:

The Sales Order audit trail will always contain the Order values and original exchange rates used at Order Entry stage. This Order transaction audit trail will not be overwritten.

The Sales Invoice audit trail will store the revised exchange rates used when the Invoice was posted and updated.

Rounding Option:

If you have elected to "Post Rounding In Real Time" then the system will ensure that the total value of a Foreign currency invoice equates exactly, (by Exchange Rate) to the Home total.

This is to overcome minor differences encountered when invoices are converted on a line by line basis.

This method, of checking and posting an adjusting entry for rounding, will be associated with the revised or selected exchange rates that are now used with this facility.

The rounding differences calculated when comparing lines to totals are recalculated when the Revaluation occurs.

Changes to Transaction Header Data:

The transaction options (relating to currency values) selected by you for each transaction are stored in the Transaction Header.

Duplicated transactions use the same options as on the original Order (where applicable).

SOP Orders posted from Costing will leave all options blank, to indicate that the transaction options have not been used.

Orders from outside the system:

Orders Imported, or upgraded, will have no options set.

Transactions entering the system through Transaction Broker have three options which can be recorded. These include the option Enter Currency Values.

What it will not do:

This feature does not cover Sales Ledger Invoices currently held in a Sales Ledger Batch. It only provides a revaluation of the transactions when they are invoiced.

This feature does not cover POP and Purchase Ledger Invoicing.