Foreign Order 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 currency cost of items you order, including:
- Display foreign currency cost and currency type when you order merchandise.
- Automatically recalculate order cost and foreign currency 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 currency cost in Inventory; however, foreign order cost on saved/updated documents is not updated.
Foreign Currency Cost and Currency Fields
Using Grid Formats, you can add Foreign Currency Cost and Currency fields to your PO/Voucher screen designs to help you manage foreign order costs.
- Foreign Currency Cost displays the cost in the vendor's currency.
- Currency is the vendor's currency type (yen, Euros, rupiah etc.).
Currency and Foreign Currency Cost on POs
You can assign a Currency to vendor records. 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 Foreign Currency Cost. If you change the item's order cost, Prism automatically recalculates the Foreign Currency Cost. Likewise, if you change the Foreign Currency Cost, Prism recalculates the PO Cost.
Foreign Currency Cost on Vouchers
To carry Foreign Currency Cost information to receiving vouchers, select "Order Cost" in the "Cost to Use for POs and Vouchers" option in Node Preferences > Purchasing > General. By default, editing the Foreign Currency Cost on a PO or voucher has no effect on the Foreign Currency Cost stored in inventory; however, if you select "Order Cost" for the "Cost to Use for POs and Vouchers" preference, then Prism will update the item's Foreign Currency Cost in inventory.
Spreading Fees and Affect on Foreign Currency Cost
If you use the Foreign Currency 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 operaton.
When you list the vendor on the voucher, Prism can spread the fee correctly (and unspread, if necessary) and update each item's Foreign Currency 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 Foreign Currency Cost based on the Currency.
Multi-Vendor Grid in RIL Inventory
For items that are sold by multiple vendors, the Multi-Vendor grid (located in the item's inventory record in RIL) displays both the Currency and the Foreign Currency Cost for each vendor.
Defining Currencies and Exchange Rates
Define foreign currencies and exchange rates in Global Preferences > Currency.