Currency conversion of purchase prices on RG warehouse documents

Created: 2021-08-30
Last updated: 2021-11-09

Post view count: 495

Users who purchase goods in multiple currencies but sell them in one fixed currency have the ability to convert purchase prices on Release of goods warehouse documents.

Let's analyze this feature with an example:

Suppose you buy several batches of the same products in foreign currencies.
Let part of the products be displayed in one currency e.g. Euro, with the purchase price increasing over time, which is illustrated by the following AG documents:

Currency AG RG 3


Currency AG RG 4


Currency AG RG 5

Additionally, we buy the same products in several other currencies, e.g. British pounds, Swiss Francs.

Currency AG RG 6


Currency AG RG 7

With enough products in stock at different purchase prices and different currencies of purchase prices, we generate sales. Let it be the same currency in which you settle the stock at the end of the year, i.e. USD.

We set the currency of stock settlements and the currency of reports in Settings> Account Settings> Your Account> Currency.
(Note! The account currency is not the same as the currency on the invoice; learn more here)

Currency AG RG

We create an invoice where we sell most of the purchased goods.

Currency AG RG 8

The Release of goods document issued to the invoice will divide the issued quantities according to FIFO.
The division will be related to the different purchase price of the same product and the purchase of products in different currencies. For example, PZ10 (blue color) and PZ8 (green color) have been marked.

Currency AG RG 9

If you want to be sure that the extracted quantity of the product on the RG document comes from the given AG document, you can check it by clicking on each of the indicated quantities.
The program will redirect you to the information sheet.
Apart from the product data such as: name, net/gross price from the product card, the warehouse in which the product is located, the program will indicate from which AG document the given quantity comes from and what was the purchase price in the main and the conversion price in the currency of the warehouse settlement (the currency of the warehouse settlement is loaded onto the document on the day of creating the given RG document).
Note! Product purchase prices and currencies may not coincide with the prices and currencies on individual AG documents.
This happens because they were most likely filled in manually on the RG document.  It is enough to remove the given purchase prices from the columns in the RG document and after saving the changes the program will update the corresponding purchase prices and currencies from the AG documents.


Let's pay attention to the summary of the RG document, which has been enriched with the conversion of products’ value into the currency of the warehouse settlement.
The summary also includes a breakdown of the total values in each currency used on the warehouse document.

Currency AG RG 10

This is not the only way to show the conversion of the items on the RG warehouse document to the currency of the warehouse settlement.
We have created a print option in the system called Show in main currency located in the Print pop-up menu.

Currency AG RG 15

The RG document with the converted items looks like this:

Currency AG RG 11

What exchange rate is used by the program to indicate individual conversions of purchase prices from AG documents into the main currency on the RG warehouse document?
The program uses the exchange rate of the day preceding the date of unloading the goods. In the system, such date is set in the field Transaction date on individual AG documents.

Currency AG RG 12

The sale date on the AG document is not the same as the sale date on the RG document or the same date on the sales invoice. This means that the sales dates on documents on the Income side do not affect the currency conversion of purchase prices from AG documents.
This solution is very useful when you issue goods on RG documents that you have entered into the warehouse with several AG documents with different sale dates (unloading dates).
The bank from which the exchange rate is taken can be selected in the main settings under Settings> Account settings> Configuration> Exchange rate options.

Currency AG RG 2

If you want to return to the original view of the purchase prices of individual AG documents, in the view of the RG document also select the option Print> Show currencies according to FIFO from the pop-up menu.

Note! This function will not be available for warehouse documents created before the change in the system.   

Currency AG RG 13

The list of warehouse documents shows the purchase values of individual warehouse documents according to the currency set when they were issued.
However, the summary of the purchase values of warehouse documents from a given period is already converted to the account's primary currency. 

Currency AG RG 14
 

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