We are in the process of implementing NAV 2009 and we have a problem. Our reporting currency is LKR, but we purchase and sell using multiple currencies. (USD,EUR,YEN etc). What we require is to have a selling rate and a buying rate for each currency. Eg. When purchasing to use USD:LKR @ 116 and when selling to use USD:LKR @ 115. Is anyone using such a system? Please let me know as our vendor is talking of modifiying NAV for this. I do not want that to happen.
I hope i explained the problem well enough. If you require any more information please let me know.
Thanks in advance
I think you can create two currencies USD-S and USD-P with different exchange rates… Assign USD-S to customers and USD-P to vendors.
Thanks . I will have to clear it with accounts before going ahead with this method. I prefer this as opposed to modifiying NAV. Also if our base currency is LCY and reporting currency is USD will I have maintain rates for USD:USD-S and USD:USD-P?
Just a question - you mean TWO different rates (purchase & sales) for currency PER DAY?
We had years ago situation, when there were 2 rates - “official”, stated by State Bank, and “commercial”, used in real life, it changed even per transaction, not per day.
In SO/PO Foreign Trade tab / Currency Code field if you click on “three dots” button, you may override Forex rate, taken from Exc.Rates table. But it must be done for each & every SO/PO manually, however.
There is always 2 rates for currency. One rate at which you can purchase foreign currency and another at which you can sell. There will always be difference between the two.
These are two different things - bying/selling (converting in Bank) currencies and SOs/POs in foreigh currency…
You are all correct!
I would just love to hear from Amal the reason why/where they have this requirement. If they are both buying and selling the currencies, then we are talking about something completely different than just Navision normal way to handle currencies.
Navision’s normal way is that you have ONE rate per day per currency. Normally the officially listed rate of the country. And when you then pay or get paid, then the rate you’re registering on the payment is the actual rate the bank is charging for the particular day.
If you are buying and selling the currencies, then you would have your own accounts in those currencies and then the rates are not really used in the same way.
Then instead you should be looking at your currency balance as an inventory value where the rate is the item value.
Sorry for the late reply. I have a lot of things on my plate at the moment and just could not find the time to sit and reply. Anyway the requirement comes from the Sri Lanka Accounting standards which state that
“A foreign currency transaction shall be recorded, on initial recognition in the functional currency, by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction”
We are still waiting for a solution by our vendor and they looked at using two code for each currency with some modifications. But that is also not finalised. We are supposed to be having a meeting tomorrow (23rd) with them to iron out the issues and hope that they will give a solution. i will get back on what the proposed solution is.
Thanks and Regards