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Fix Exchange Rate From Purchase Order To Purchase Invoice

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Posted on by Samantha73

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Hi All

Is there a way to have the same exchange rate by default on all purchase documents, from purchase order ---> Purchase Receipt ---> Purchase Invoice

Currently by default the system takes the default exchange rate from the currency table for the day irrespective of the original rate in the source document

Thanks

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Inge M. Bruvik 993 Super User 2024 Season 1 on at

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RE: Fix Exchange Rate From Purchase Order To Purchase Invoice

The workaround you can do with out doing customization in code is to simply only update your currency exchange rates once a month.

Then you will get the same exchange rate for the whole month.

But then you will have to manually override the exchange rate you use for payments. But in many cases you will have to do that anyway because the rate your bank use seldom will be 100% accurate against the rate you have in your exchange rate table.

That said i agree with Steve that i would always recommend to use the standard functionality in this area. The accounting gets more accurate and cost is allocated to the goods you purchase instead of currency gain/loss.
DHO Rainbow 5 on at

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RE: Fix Exchange Rate From Purchase Order To Purchase Invoice

Hi Samantha,

Our customer has the exact same question regarding purchases.

Have you been able to workaround this?

Kind regards,

Daniel Hodenius
Samantha73 2,482 on at

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RE: Fix Exchange Rate From Purchase Order To Purchase Invoice

I guess one can argue the system should update the rate on the purchase invoice from rates table but we want to get the rate from PO so rate is managed using the average rate per month which is changed one a month. The requirement is less frequent fluctuations in terms of cost due to rate changes. However, invoice to payment currency rate differences exist and gain/loss is calculated.
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Community Member Microsoft Employee on at

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RE: Fix Exchange Rate From Purchase Order To Purchase Invoice

Samantha,

Adding to the replies... As an Accountant and Implementer/Architect of NAV/BC, I would strongly ask why do you want to do this? This does not follow IFRS or GAAP accounting for Foreign Currency. You could do it through code, as YUN wrote but I would still ask why as you will still need to update monthly the change in FX and when the Purchase Invoice is paid you will have a realized gain/loss on FX.

I know this is not the answer you wanted but given you my opinion that I would not implement such a change.

Thanks,

Steve
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YUN ZHU 75,595 Super User 2024 Season 2 on at

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RE: Fix Exchange Rate From Purchase Order To Purchase Invoice

Hi, I think this is a bit difficult, as you said, exchange rate has something to do with the posting date and has nothing to do with the original documents. This is correct.

Sorry I haven't tried it, bu hope the following can give you some inspiration. (This may be risky, not recommended)

CurrExchRate.ExchangeAmtFCYToLCY

Hope this will help.

Thanks.

ZHU
MANJUNATH DHANAPAL 175 on at

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RE: Fix Exchange Rate From Purchase Order To Purchase Invoice

Based on the local currency, you could add multiple currencies in the CURRENCIES and define the exchange rate. Screenshot below for your reference.