Multicurrency

DEAR Inventory automatically converts currency while creating purchase order or sale order. 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 in.
  2. Base currency of the supplier - This is the currency in which the supplier business is operated in 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. 


Setting up Base Currency in DEAR Inventory

In DEAR Inventory, the base currency or main currency, in which you operate your business in, should be set-up in the Organization Settings. The base currency set here will affect all the modules wherever applicable.


1.  Login to DEAR Systems.


2.  Navigate to Settings > General Settings.


The Settings page will be displayed. 



2.  Select the currency, in which you operate your business in, in the Base Currency field from the dropdown list.


3.  Click Save. The selected base currency is saved.

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Conversion from DEAR Inventory base currency to Supplier base currency


When the base currency in the DEAR Inventory and base currency of a supplier are different, DEAR Inventory will automatically convert currency when a purchase order is created and the total amount of the purchase order will be displayed in both the currencies. 


1.  Login to DEAR Systems.


2.  Navigate to Purchase > New > Simple Purchase.


The New Purchase page will be displayed.



3.  Select the supplier, from whom you want to purchase inventory, from the Supplier field dropdown list and values for all the other mandatory fields. 


The conversion rate for the base currency of the DEAR Inventory and the Supplier base currency is automatically displayed. 


Note: The currency conversion data is obtained from https://openexchangerates.org/.


4.  After you have filled the purchase order details, the total amount of the purchase order will be displayed in both the DEAR Inventory base currency and the supplier base currency. 



Note: If there is no discrepancy between the currency conversion rate in DEAR Inventory and the accounting application (integrated with the DEAR Inventory), then the currency conversion information is carried forward to the accounting application after the purchase order is authorized.

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Setting up currency for existing customer


1. Login to DEAR System.



2.  Navigate to Sale > Search > Customers.


The Customers page will be displayed with all the existing customer details.



3.  Double click on the row of the customer for which you want to set the currency for. 


The customer details page will be displayed. 



4. Select the desired currency in the Currency field dropdown list. Click Save.


Currency for the selected customer will be updated. 

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Setting up currency for existing supplier




1. Login to DEAR System.



2.  Navigate to Purchase > Search > Suppliers.



The Suppliers page will be displayed with all the existing suppliers details. 



3.  Double click on the row of the supplier for which you want to set the currency for. 


The supplier details page will be displayed. 



4. Select the desired currency in the Currency field dropdown list. Click Save.


Currency for the selected supplier will be updated. 

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Conversion from customer currency to DEAR Inventory base currency




When the base currency in the DEAR Inventory and currency of a customer are different, DEAR Inventory will automatically convert currency when a sale order is created and the total amount of the purchase order will be displayed in both the currencies.


1.  Login to DEAR Systems.


2. Navigate to Sale > New > Simple Sale.


The New Sale page will be displayed. 


3.  Select the customer for whom you want to make the sale to from the Customer field dropdown list and the values for all the other mandatory fields. 


The conversion rate for the customer currency and the base currency of the DEAR Inventory is automatically displayed. 




4.  After you have filled the sale order details, the total amount of the sale order will be displayed in both the DEAR Inventory base currency and the supplier base currency.



Note: If there is no discrepancy between the currency conversion rate in DEAR Inventory and the accounting application (integrated with the DEAR Inventory), then the currency conversion information is carried forward to the accounting application after the invoice is authorized.

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OLD ARTICLE

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 the purchase order is created and the data is obtained from https://openexchangerates.org/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.




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