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ie) we buy a product in CAD, sell in USD = a different rate than an item we buy in USD and sell in CAD. How do we set up the USD to recognize the different rates.
Hi, The exchange rate on the order is automatically obtained according to the currencies settings. Of course, you can customize it to modify it, although it is not recommended.
And general financial personnel will perform the following operation at the end of the month, so different exchange rates will not cause problems.
In addition, I have encountered customers in your situation and suggest to calculate manually outside the system and then fill in the local currency amount in the system.
Hope this can give you some hints as well.
Thanks.
ZHU
Corrct. Business Central will by default use the same rate for these transactions.
You can either change it manually for each transaction or you can make a customization.
But my point is that the the exchange rate that really matters for your profit/loss is the exchange rate you use at the time of payment.
Normally currencies will be adjusted for you AR/AP and bank accounts during month end.
So I am not sure that having different currency rates for CAD/USD USD/CAD will really be worth the effort. It will be a temporarily effect until the point of payment where the actual exchange rate for the payment will have to be used. Unless you receive the USD payment into a USD bank account and also pay from a USD bank account.
our local currency is Canadian Dollars. We purchase and Sell in multiple currencies. we are not looking for different rates to buy and sell on the same day. We are looking to set-up different rates depending if we are going from CAD to USD or USD to CAD these will be different rates at the same second... the bank needs to make their margin. It looks to me that BC will use the same rate for both?
Interesting question, in Business Central I have not seen the option to have different purchasing and selling rate for a currency.
Not sure if it is correct as per accounting practices I have read somewhere the similar case and they solve the issue by creating two currency records for specific foreign currency.
Like in your case if CAD is foreign currency, then you can create CAD-P for Purchases and create CAD-S for sales and set the different rates. Assign CAD-S to required customers and CAD-P to the vendors that deal in that currency or you can explicitly mention currency codes on journals and documents. In this way different exchange rate will be used.
If you like you can use different currency rates for each transactions you post in the system.
What is the local currency of your system?
Using a different currency rate for the same currency pair for sales and purchase transactions that happen on the same date does not really make much sense.
The difference in currency rate from the time of sale / purchase will anyway be a financial gain / loss at the time of the payment transaction.
We are aware how to set-up multiple currencies, we are unclear how to use different rates for a single currency. If you buy CAD with USD it is a different rate than if you buy USD with CAD. If the item was purchased in CAD and sold in USD is one rate. if the item was purchased in USD and sold in CAD it's another. How do we have the system recognize these and apply the correct rate? We can only see one rate in the USD currency card.
Hi,
In Business Central you can setup multiple currencies. You first need to create currencies and then setup currency exchange rates.
You can go through the link below, it is step by step process and explained well.
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