Foreign Currency Cost (FC Cost)
Vendors can be located anywhere in the world. Working with foreign vendors means that you're dealing with your own currency as well as the vendor's currency when you order merchandise. Prism provides several options to help you manage the foreign cost of items you order, including:
- Display foreign order cost and currency type when you order merchandise.
- Automatically recalculate order cost and foreign order cost when either value changes.
- List items by multiple foreign vendors, while Prism calculates each item's foreign order cost using the appropriate exchange rate.
Important: Prism calculates foreign order cost based on the active exchange rate for the current time period. When a new exchange rate becomes active, Prism automatically recalculates foreign order cost in Inventory; however, foreign order cost on saved/updated documents is not updated.
FC Cost and Currency Fields
Using the Grid Formats preferences, you can add foreign currency fields to your PO/Voucher screen and document designs to help you manage foreign order costs.
- FC Cost displays the cost in the vendor's currency.
- Currency field in the vendor record is the vendor's currency type (yen, Euros, rupiah etc.).
You can add the following foreign currency fields to PO, voucher grid formats:
| Foreign Currency Field | Description |
|---|---|
| FC Discount | The document discount amount in the foreign currency. |
| FC Cost | Cost of the item in the vendor's assigned foreign currency. |
| Ext FC Cost | The document extended cost for the item in the foreign currency. |
| Ext FC Price | The document extended price for the item in the foreign currency. |
| Org FC Cost | The original cost of the item in the vendor's foreign currency (before any discounts). |
Currency and FC Cost on POs and Vouchers
When you enter a Vendor Code on a purchase order, the currency assigned to that vendor is automatically entered on the PO.
Prism applies the exchange rate for that currency to each item's order cost (PO Cost) to calculate the FC Cost. If you change the item's order cost, Prism automatically recalculates the FC Cost. Likewise, if you change the Foreign Order Cost, Prism recalculates the PO Cost. The exchange rate(s) used for currencies come from the settings in Admin Console > Global Preferences > Currency > Exchange Rates.
FC Cost on Vouchers
To carry FC Cost information from the PO to receiving vouchers, select the Use Order Cost on POs and Vouchers option in Admin Console > Node Preferences > Purchasing > General.
Spreading Fees and impact on FC Cost
If you use the FC Cost field for voucher items, be sure to:
Restrict your system to one vendor per PO/Voucher (this is the default setting)
List the vendor on the voucher at the time you perform the spread operation.
When you list the vendor on the voucher, Prism can spread the fee correctly (and unspread, if necessary) and update each item's FC Cost.
If the vendor is not listed on the voucher at the time of the spread operation (Vendor Code = blank), then the base currency is used.
Items From Multiple Foreign Vendors on a Single PO
If your system preferences are configured to allow items from multiple vendors on a single PO or voucher, and these vendors use different currencies, you can change the Currency field for individual items, as needed. Prism calculates each item's FC Cost based on the Currency.
Defining Currencies and Exchange Rates
Define foreign currencies and exchange rates in Admin Console > Global Preferences > Currency > Exchange Rate.