How to input various exchange rates for the same currency?

vikash

hello again,

In Mauritius we use 2 or more Exchange Rates for the same currency in business. We've got mainly the Buying Exchange Rate and the Selling Exchange Rate of each foreign currency.

We use Buying Exchange Rate for Export Sales and Receipts from foreign customers in F/C.

Else, we use Selling Exchange Rate for Imports and Payments to Foreign Creditors and L/Cs.

Now the Exchange Rates vary daily and usually Selling Exchange Rates are greater than Buying Exchange Rates.

My questions are as follows:

1) How and where do we tell navision which rates to use ( buying or selling ) since in the exchange rate window we don't have this option;

2) Being given that when we receive foreign currencies from overseas customers we apply the buying exchange rates and when paying overseas creditors we use selling rates how do we apply the receipts to the payments since in foreign currency terms the value is the same but when converted to mauritian rupee they are different. e.g: we receive F/C Usd 10,000 representing LCY MRS 300,000 ( Ex Rate 1: 30 ) and we pay USD 5,000 equivalent to MRS 175,000 ( Ex Rate 1: 35 ). Theoretically the balance of our F/c should be USD 5,000 representing MRS 125,000. But as you see, this is wrong since the balance should be USD 5,000 representing MRS 150,000;

3) In our debtors ageing and creditors ageing, the balances in F/C are shown at the value converted on the date of the report. But we need the original value when the transaction was effected. how to proceed.

Please, a helping hand from esteemed experts would be grateful

Rgds,
Vikash

kriki

1) It is not possible. Navision uses only 1 rate for both sales/purchases. If you click the assistbutton of the currency on the order/invoice/CM, you can manually change it for the that document. If you want it automatically, you have to do some programming.
-putting a second field in the currency-exchange-table
-everywhere the currency exchange rate is requested, change the program to say whether it is sales/purchase.

zeninoleg

I do not know much about the financial part but the question arises anyway - what are you going to do with the difference? Basically the money that you will make(or lose) on the exchange rate must go to the certain account. So the modifications must include that as well.

Rodriguez

1) Hi, we also have a quite similar issue here, in Indonesia (=1 currency has multiple exchange rates), we did some modifications to cover it, but actually, if there's another work around for that, I would suggest you go for the work-around!
2) I dont have a clear understanding on case #2, are you talking from the Bank Accounts view point? If yes, I think this case is related to case #1 (same issue)

Regards,
Rodriguez

Miklos_Hollender

We had the same stuff in Hungary in the past and did the same stuff Blackie suggested - set up EURB(uy), EURS(ell) etc. currencies, set EURB to customers, EURS to vendors and lived happily like Snow White in the woods forever afterwards And we hoped we will never have a partner that's both a customer and a vendor

Question 3) is not true I think - Navision converts it to LCY when you post the transaction. Check out Amount (LCY) when drilling into Balance on Customer /Vendor Card. All reports should use this field. If not, change the report - shouldn't be hard. But I think standard repots, especially Customer Aging use this.

leewhite1234

I agree with BlackTiger. We've had similar issues, but ours were where a customer or vendor contract specified an exchange rate. Setting up a currency with that exchange rate and then using it for all transactions with that specific vendor or customer worked fine. As Navision converts everything to LCY, this let us purchase in currency ZA1 and then sell in ZA or EU, etc.

Hope this helps.

ecclectic

the amount in LCY would be the original amount unless you have done some currency revaluation in which case, it would then be displayed at the revalued amount