An Exchange Rate is a feature that helps you manage the value of one currency for conversion to another. It is the value of one nation’s currency versus another nation’s currency or economic zone.
The Exchange Rate in Precoro can be edited by the document Initiator and its Approvers.
TABLE OF CONTENTS
Types of Exchange Rates You Can Choose
Precoro allows you to choose between three existing types of exchange rates. To do that, go to the Configuration in the left-side menu, open Basic Settings, and then the Currencies:
1. Manual exchange rate allows you to input the rate yourself whenever creating new documents.
Please note that when you create an Invoice based on an Order and change the currency rate in the Invoice, the currency rate in the Purchase Order will not be updated. However, you can change the currency rate in the Order by clicking the Edit button and then editing the exchange rate.
You can track the changes in exchange rates in documents by using the Revision History Function.
Also, when you use the document Repeat function, the old manual exchange rate from the previous document will not be transferred into the new one. You will be able to input fresh rates without having to delete the old ones.
2. Auto exchange rate is the default rate. It does not require any extra steps. The system automatically calculates the actual amount according to the currency service: https://currencylayer.com. The currency rate is updated every hour.
3. Fixed exchange rate is set for all created documents, in contrast to the manual one, which needs to be set whenever creating a new document.
In the Currencies tab, you can do the following:
- Enable fixed exchange rate
- Set rates for all your currencies.
Please note: Even when you are creating a document with the fixed exchange rate, you can still edit it manually on the document creation page.
How the Exchange Rate Works
For example, the amount is calculated as follows:
- Main currency — EUR
- Additional currency — USD.
We use the USD to EUR exchange rate.
Our price in EUR = the price in USD*USD to EUR exchange rate = the price in EUR.
USD price = $100
USD to EUR exchange rate = 0,88056
Price in EUR = $100*0,88056 = €88,056
In What Documents You Can Set and Change the ER
In Precoro, you can set exchange rates in the following documents:
- Warehouse Requests
- Purchase Requisitions
- Requests for Proposals
- Purchase Orders
You can edit the ER according to the document statuses below:
|Requests for Proposals||+||+||+||+|
Exchange rates cannot be edited on the Canceled, Rejected, Matching, Completed, Paid, and Partly Paid stages.
Also, please note that when editing the rates with Pending or Approved statuses, the Matching status in a document will not be triggered.
With Auto Exchange Rate, when you choose the option to Repeat the document, the rate will be automatically updated according to the actual one.
Types of Rounding Settings
In the Currencies tab, you can specify the following:
1. How many digits after the decimal point should be calculated
2. What type of rounding suits your process best:
Math — replacing a number with an approximate value that has a shorter, simpler, or more explicit representation.
The two basic rounding rules will apply, so
if the number you are rounding is followed by 5, 6, 7, 8, or 9, it will be rounded up;
If the number you are rounding is followed by 0, 1, 2, 3, or 4, it will be rounded down.
- Up — if the number you are rounding is followed by 1, 2, 3, 4, 5, 6, 7, 8, or 9, it will be rounded up.
- Down — if the number you are rounding is followed by 1, 2, 3, 4, 5, 6, 7, 8, or 9, it will be rounded down.
Please note: The Net and Gross Total in the document will be rounded by default to two decimals, while in the Item Lines and Budget, they will be calculated according to your rounding settings.
Rounding Application in Documents
Whenever you add items to any document in Precoro, the rounding you have set will apply to them all.
For example, let’s round up the price to one digit after the decimal point:
When adding the items, we have the following calculations: as our price was 15.33, the rounding setting gave us Net and Gross Totals of 15.40:
If you wish to round to a whole number, select “0” in the field that denotes how many numbers after the decimal point to round, and choose the type of rounding:
Important Notes to Consider
- The exchange rate is recorded and saved whenever a PO or an Invoice is created.
- 5 is the available number after the decimal point (.5) for the exchange rate.
- Next time you create a PO or an Invoice:
- Exchange rate updates to a current one within less than an hour
- Updated exchange rate applies in the document in an hour or more.