DEAR Inventory automatically creates a currency conversion when creating a purchase or a sale order. You will need to set a number of parameters before multicurrency can be used.
Multicurrency is not available in the Small DEAR Inventory plan.
- There are three factors that determine whether currency conversion will occur. First is the base currency that your business operates in. This is set up within Settings by navigating to General Settings. Within the Organization section, the base currency will need to be identified when initially setting up DEAR Inventory.
The second and third factors are base currencies of your customers and your suppliers.
You can set these up by navigating for suppliers to the Purchase module and viewing the list of existing suppliers. Then selecting the relevant supplier from the list and updating their currency. If the supplier currency is different to that of your base currency, a currency conversion will automatically occur when purchasing inventory from this supplier.
Make sure to save your changes before exiting the screen.
Let’s see what happens to the purchase order when it's prepared for the supplier.
- Navigate to the Purchase module and create a new purchase.
- When a supplier is selected from the list, if applicable, a conversion rate will automatically be filled on the screen. In this instance, our base currency is U.S. dollars whereas the supplier’s currency is Euro, and this the relevant exchange rate.
The currency rates are set at the moment when purchase order is created and data is obtained from http://www.xe.com/.
The user can change this rate manually if needed.
Once the purchase order details are filled, you also receive a total both in your base currency and in the currency of the supplier.
After the invoice is also authorized, that information then goes to the accounting application.
This exchange rate is carried to the accounting application if we don’t have a discrepancy between the conversion which occurs at DEAR Inventory and the accounting application of your choice.
For customers, it's a similar process. Within the Sale module you can view a list of your current customers. Within the existing list, you can select an existing customer and amend their base currency or the currency that they operate in. We'll need to save the changes before exiting the screen. Then need to navigate to the Sale module and create a new sale order.
When the relevant customer is selected from the list, a conversion automatically occurs. Again, it can be changed in the screen if required and you will be provided with relevant totals both in your base currency and the currency of the customer.
The currency exchange rate will be passed to the accounting application of your choice once the invoice is completed.