In today’s expansive marketplace of global sourcing, it is common for the supply chain of a company to include vendors in different countries. The procurement of goods and services by vendors from outside of the country may mean that purchase orders have to be raised in multiple currencies. Our purchase management software can handle purchase orders created in as many different currencies as you need.
Multiple currencies and budgets
One of Purchase Control’s key functions is to account for all expenditures related to purchasing and more importantly to decide the validity or appropriateness of purchasing activity. To do this, our online purchase order software examines all purchasing activity, in real time, relative to defined user and departmental budgets and limits. Maintaining the budget control set up in the system requires an ability to match the orders created in different currencies back to the budgets.
Converting to the base currency
Although Purchase Control can create orders in as many currencies as required all user and department related budgets are recorded in a base currency (the currency of the company’s bookkeeping system) Our procurement software, in order to calculate expenditure across multiple currencies, must be capable of converting figure values in foreign currencies into base currency amounts. By setting the exchange rates for each individual currency you will be ordering in you will ensure all budgets and controls set in the system will be maintained no matter how many currencies you may be ordering in.
Restricting currency by supplier
If you are ordering from a supplier in a different country using a different currency for the orders it is likely that all your orders for that supplier will be in the same currency. In Purchase Control you can restrict the currency orders are created in for a supplier as needed so you can be sure there are no manual errors can occur when creating a purchase order causing an order to be created in the wrong currency for a supplier.
If you have suppliers where you will be creating orders in different currencies that is no problem either. You can leave the currency open to be selected when the requisition is being created. This will allow whatever currency an order needs to be created in to be set by the user creating the order.
Working with multiple currencies
Currency configuration activities can be carried out by any user given access to do that. Access control can be set per user so you can give whoever needs this access that ability with ease. Setting the currency details can be done through the finance functions section of the the Control Panel.
Purchase Control will not automatically update the exchange rates between the different currencies in the purchase order software. This is completed manually when you change the exchange rates set in the financial package. The exchange rates set in Purchase Control are related to the internal management of budgets only. When integrating with different financial packages the conversion rate is usually set there. Only the order and currency information will be posted to the financial package from Purchase Control.
To view current exchange rates we recommend referencing XE – The World’s Favorite Currency Site.