How to use currency fluctation system in Nav 5.1

VGF

Hi,

We are working with SQl NAV 5.1.
At this moment we are struggling a lot with the US$ fluctuation.
We buy and sell in US Dollar, but our LCY is EURO.
I understand if we post a purchase invoice, the parts will go into the system with the exchange rate
which is given at that time. But if taht invoice is paid after 30days and the Exch. Rate in completly different how do you
see that back in the cost of your part? Or better, how and when do you see your profit / loss on currency.
I am very interested in knowing how others are doing this.
Hope anybody can advise me

Thanks

kapil4dynamics

To see the gain or loss u need to run the batch job Adjust exchange rates in Financial - Periodic activities. And yes i think back end wont matter in this means it is same if u r on SQL or native db.

ssingla

VGF wrote:

I understand if we post a purchase invoice, the parts will go into the system with the exchange rate
which is given at that time. But if taht invoice is paid after 30days and the Exch. Rate in completly different how do you
see that back in the cost of your part? Or better, how and when do you see your profit / loss on currency.

The cost of the part will be based on the exchange rate on the purchase date. The fluctuation in the exchange rate will result in only financial gain/loss which will not impact the cost of the goods. System will post the gain/loss entry at the time of application of invoice with the payment.

ayhan06

VGF wrote:

Hi,

We are working with SQl NAV 5.1.
At this moment we are struggling a lot with the US$ fluctuation.
We buy and sell in US Dollar, but our LCY is EURO.
I understand if we post a purchase invoice, the parts will go into the system with the exchange rate
which is given at that time. But if taht invoice is paid after 30days and the Exch. Rate in completly different how do you
see that back in the cost of your part? Or better, how and when do you see your profit / loss on currency.
I am very interested in knowing how others are doing this.
Hope anybody can advise me

Thanks

turkish legislation says that
1- exch. gain / lost that exists before physically having items on hand,must be reflected to the cost of items.
2-exch. gain / lost that exists after having items on hand physically,can be reflected to the cost of items.

so,if legislation in your country allows, you need to make a report that calculates exh. rate gain / loss for every purchase invoice and charge that gain/loss to the items in that invoice..you should run this report periodically.otherwise, you should use additional reporting currency as us$ and make modification for NAV to maintain sales amounts in acy. then you can compare acy profit and lcy profit.