Multicurrency

DEAR Inventory automatically converts currency while creating a purchase order or sale order if the supplier/customer currency is different from your base currency. There are three different base currencies between which currency conversion might occur.

  1. Base currency of DEAR – This is the currency in which you operate your business.
  2. Base currency of the supplier – This is the currency in which the supplier business is operated and the currency based on which the supplier bills you.
  3. Base currency of the customer – This is the currency in which the customer makes the payment for the products purchased.


NOTE: Prices on sale/purchase order lines always denote the price in the document currency (customer/supplier base currency). If you use static price tiers to set prices for your product, be aware that the price tier value will not be converted according to the document currency. If you are using markup pricing, the price is specified in the base currency then converted to the document currency. 


Prerequisites:


Table of Contents


Setting up the base currency

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In DEAR Inventory, your base currency or main currency, in which you operate your business, should be set up in the Organisation Settings. 


NOTE: Setting up the base currency is only possible until the first transaction is entered in the system. After that, the base currency can't be changed.


Set your base currency:

  1. Navigate to Settings -> General Settings -> Organisation.
  2. Select the currency in which you operate your business as the Base Currency from the dropdown list.
  3. Click Save to finish. 



Set supplier base currency

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This is the currency in which the supplier business is operated and based on which the supplier bills you.


Setting up base currency for existing supplier

  1. Navigate to Purchase -> Suppliers. The Suppliers page will be displayed with all the existing suppliers details. 
  2. Select the supplier for which you want to set the currency. The supplier details page will be displayed. 
  3. Select the desired currency from the Currency dropdown. Click Save. Currency for the selected supplier will be updated.




Set customer base currency

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This is the currency in which the customer is invoiced and in which they make the payment for the products purchased.


Setting up currency for existing customer:

  1. Navigate to Sale -> Customers. The Customers page will be displayed with all the existing customers details.
  2. Select the customer for which you want to set the currency. The customer details page will be displayed.
  3. Select the desired currency from the Currency dropdown. Click Save. Currency for the selected customer will be updated.




Conversion from supplier currency to base currency

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When your base currency and the supplier currency are different, DEAR will automatically convert currency when a purchase order is created and display the purchase order total in both currencies.


Once a supplier with a different currency has been selected in the purchase order document header, a conversion field will appear. DEAR automatically obtains the conversion rate from https://openexchangerates.org/, but this field can be manually overwritten if necessary.



The price field in the purchase order lines is filled in with the value in the supplier currency. After the purchase order details have been filled in, the purchase order total will be displayed in the supplier currency, and below, the total in your base currency. 



If an accounting system (Xero/QuickBooks Online) is integrated with DEAR, the currency conversion rate will be sent from DEAR to the accounting system.


Conversion from base currency to customer currency

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When your base currency and the customer currency are different, DEAR will automatically convert currency when a sale order is created and display the sale order total in both currencies. 


Once a customer with a different currency has been selected in the sale order document header, a conversion field will appear. DEAR automatically obtains the conversion rate from https://openexchangerates.org/, but this field can be manually overwritten if necessary.



The price field in the sale order lines is filled in with the value in the customer currency. After the purchase order details have been filled in, the sale order total will be displayed first in the customer currency, and below, the total in your base currency. 



If an accounting system (Xero/QuickBooks Online) is integrated with DEAR, the currency conversion rate will be sent from DEAR to the accounting system.


Setting prices in multiple currencies

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Many DEAR users sell in multiple currencies. Prices in currencies other than your base currency can be set dynamically using calculated pricing and the current conversion rate, or statically using simple price tiers. See Pricing and Price tiers for more information. 


Calculated pricing

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Prices for your products are set from the product detail screen (Inventory -> Products -> [selected product]), in the Prices tab. All calculated prices are shown in your base currency. Markup percentages or append values are added after the currency conversion. When selling in a different currency, the selling price will be recalculated according to the most current conversion rate from https://openexchangerates.org/


Calculated prices are calculated from different base values, which can then be marked up. DEAR allows you to choose from four base values:

  • Average Cost – this is the default base value.
  • Fixed Supplier Price –  fixed supplier prices are set on the Suppliers tab for the product. If the fixed supplier price is in a different currency, it is converted into the user base currency first before the markup price is calculated. 
  • Last Supplier Price –  the last supplier prices for a product can be viewed on the Suppliers tab for the product. If the last supplier price is in a different currency, it is converted into the user base currency first before the markup price is calculated.
  • Price Tier Value – the number in the Value field is used as the price. 


Prices calculated from Average Cost, Fixed Supplier Price and Last Supplier Price will vary dynamically with supplier prices and currency conversion rate. Prices set using Price Tier Value will only vary due to the currency conversion rate. 


Simple price tiers

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You may prefer to set a static price for another currency if you do not want regular fluctuations in the conversion rate to change your prices. To do this, the best method is to make a price tier for the currencies you want to set static prices for. 



When processing a sale order, make sure the price tier in the document header is set to the price tier you have made for that currency. You can also apply price tiers to the customer itself. 





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