How to set up currency rates and how are they calculated?
1. To setup currency rate you need to:
- Choose main currency rate while creating a company
- Choose additional currencies depends on which currencies your suppliers work with
- Currency rate is calculated in relation to main currency
An example of how the amount is calculated in the base currency when the order was created in another one:
main currency - EUR
additional - USD
We use USDtoEUR exchange rate
Our price in EUR=price in USD*USDtoEUR exchange rate = price in EUR
usd price = 100$
usd to eur exchange rate = 0.88056
Price in EUR = 100$*0,88056=88,056 €
Currency rates service: https://currencylayer.com
2. Currency rate is constantly updating every hour.
When PO/Invoice is created - the exchange rate is saved for this operation.
Next time you create PO/Invoice:
- less than in one hour - already saved one exchange rate is used
- an hour or more - the updated exchange rate is used
When you create an Order exchange rate was fixed for once and forever, if you need to change it - you can do it manually.
When you create Invoice based on order, and you change currency rate to another currency (in Invoice) then Order is also updated to same currency.
3. Available numbers after decimal point for exchange rate - 5.