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 currency cost of items you order, including:

• Display the Cost of the item from the vendor in the vendor's currency
• Recalculate order cost and FC Cost when either value changes.

Important: Prism calculates FC 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. The exchange rates associated with a currency are defined in Admin Console > Global Preferences > Currency > Exchange Rates.

FC Cost and Currency Fields
Using Grid Formats, you can add FC Cost and Currency fields to your PO/Voucher screen designs to help you manage foreign order costs.

• FC 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 to calculate the FC Cost. If you change the item's Order Cost, Prism automatically recalculates the FC Cost. Likewise, if you change the FC Cost, Prism recalculates the Order Cost.
Spreading Fees and Foreign Currency 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 Global Preferences > Currency and Global Preferences > Currency > Exchange Rates.