Purchasing in Foreign Currencies


Often, you will need to submit a purchase order to vendors who do not deal in your local currency. When this is required, you can specify that a purchase order be entered in a foreign currency. These steps will demonstrate how to handle this.


Adding Foreign Currencies

To add a foreign currency to the system:

  1. Go to Setup → Categories
  2. Click on Foreign Currencies
  3. Click on Add, specify the formal currency code, and a friendly description.

  4. Click on Save.

That currency is now available wherever foreign currencies are listed.


Specifying a Vendor uses Foreign Currency

When adding or editing a vendor, you can specify that the trade in a foreign currency.

  1. Go to Setup → Business Partners
  2. Edit your vendor, or click Add
  3. Under Classification, ensure type is set to Vendor
  4. Under Pricing, select a foreign currency on the Default Currency field.
  5. Click Save.

When you create new Purchase Orders for that Vendor, the default currency selected here will be used.


Specifying a Foreign Currency on a Purchase Order

To specify that a Purchase Order is listed in Foreign Currency:

  1. On the Purchase Order Edit screen, click the list next to Foreign Currency. This will list all the foreign currencies available to you.
  2. There will be a new field, indicating the conversion rate of that currency. You may click on Refresh Conversion Rate to get a new conversion rate, or enter your own quoted value.

  3. Click on Save Currency Changes


Now, the system assumes that the item price, shipping, and taxes entered on each purchase order line item are in the foreign currency. For cost reasons, those values will be converted to local currency when saving and for reports. The purchase order will also display an indicator, showing that it is listed in a foreign currency.