TABLE OF CONTENTS
- Which types of Exchange Rates you can choose
- How does ER work
- In what documents you can set the ER and change it
- Types of Rounding Settings
- How does Rounding apply in documents
- Important things to consider
- The exchange rate is recorded and saved whenever a PO or an Invoice is created.
Which types of Exchange Rates you can choose
1. Manual exchange rate allows you to input the rate yourself whenever creating 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 won't be updated. However, you can change the currency rate in the Order by clicking the Edit button and then editing the exchange rate.
2. Auto exchange rate — this is the default rate. It doesn't require any extra steps. The system automatically calculates the actual amount according to the currency service — https://currencylayer.com. The currency rate is being updated every hour.
3. Fixed exchange rate is set for all the created documents, in contrast to the manual, which needs to be set whenever creating a new document.
In the Currencies tab, you can:
- enable the fixed exchange rate
- set the rates for all your currencies
Please note, even when you are creating a document with the exchange rate, you can still edit it manually either on the document creation page:
Or directly in a document:
How does ER work
For example, the amount is calculated:
main currency - EUR
additional - 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 the ER and change it
In Precoro, you can set the exchange rates in the following documents: Warehouse Requests, Purchase Requisitions, Requests for Proposals, Purchase Orders, and Invoices.
The editing of the exchange rates is not possible when the document is in one of the stages: "Canceled," "Rejected," "Matching", "Completed," "Paid," and "Partly paid."
You can edit the exchange rates as needed on all document stages, but please note that when editing the rates on "Pending" or "Approved" statuses, the "Matching" status in a document will not be triggered.
Types of Rounding Settings
In the Currencies tab you can specify:
1. How many digits after the decimal point you would like to be calculated.
2. What type of rounding suits your process the 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 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.
How does Rounding apply in documents
Whenever you adding 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:
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:
- 5 is the available number after the decimal point (.5) for the exchange rate.
- Next time you create a PO or an Invoice:
- the exchange rate is current within less than one hour;
- an updated exchange rate is used in an hour or more.