Supplier Exchange rates and how they are applied.

Bookmine stores default Exchange rates for the Supplier which are applied every time an item is added to a PO for that supplier. The user can change this value at the time of ordering. At delivery time the value is applied to the new delivery but can be overridden if the actual value has changed.

The following exchange rates can be recorded:

• Supplier record - Current exchange rate (all rates automatically default to this value. Can be overridden)

• Rate applying at time a Purchase order is raised ( inherited from Suppliers record and overrides any existing value stored. This value is used to compute a notional cost of the Purchase Order for planning purposes only. The value at delivery time may vary.)

• Rate applying at delivery time (recorded at delivery time and can be different to value already recorded in the Purchase Order)

Entering exchange rate

Exchange rates are recorded as the value of the local currency relative to the currency of the supplier. E.g. if the local currency is the Australian dollar, the Supplier uses US dollars and the Australian Dollar is valued at 0.73 of the US dollar, enter 0.73 as the exchange rate.

Enter 1.0 for suppliers that use the same currency as you. If you use US dollars and the supplier is Australian, then the rate to enter is approximately 1.5 for the rate specified above.

Because exchange rates can fluctuate from the time you enter default supplier conditions to the time you raise a purchase order and again to the delivery time there are several exchange rates that you can record during the life of a Purchase Order. Applying the correct rate gives you a better chance of determining how much you should be charging for a given item, based on the discounts and exchange rates that applied when an item was actually delivered. It also helps to track down costs variations due to errors by you or the supplier.

You can also print report showing the total value of items ordered in a given period. While this may not be exact it will be close enough to be useful for forward planning, etc.