currently we have a vendor that we sent in po in usd, but internally all transactions/ documents/ reports in local currencies.
how can we specify in po to use usd an rest of document in local currency?
i understand that in vendor card that we can set in currency, like wise for po header and po line, but instead of manually select usd in po header or po line everytime it is created, do we have a default setting for this vendor + po document?
Hi , You can set the currency in the foreign trade tab.
Select the foreign currency in the Currency Code field on the Foreign Trade Tab on the Vendor card.
On purchase order, when you select the vendor currency will be updated.
i understand that we can use vendor card to setup in foreign tab, however when we create internal documents (eg: purchase invoice, purchase credit memo) how would be the default currency be like? taken from vendor card?
i understand however when user create internal document (eg: purch cr. memo, purch. invoice), they prefer to use local currency.
there is flexibility for user to change them in purch header, purch line, but user doesnt want the hazzle to set them everytime a document is created.
furthermore, when an external document (document going to vendor) is created, user want to set currency using what was set in vendor card.
IF you set the Vendor’s currency then his documents will default to that currency.
If its not set on the vendor level it will be LCY.
Why do you refer to these as “internal”? Do you speak about cases when PI & CM are created to correct errors? Even then you should use the same currency as the original doc had - otherwise you’ll get unnecessary adjustment postings of Forex difference gains or losses, which didn’t occur in real life.
i am still new to navision so do kindly correct me if my understanding is not clear/ correct.
when we create post purch. order> it will became posted pi (the currency will be in foreign currencies based on the vendor card set unless user change them explicitly in purch. header/ purch line)- if its left blank in vendor card then lcy will be used.
i refered them as internal as this documents are not pass/ flow/ hand over to vendor.
bonus qs “otherwise you’ll get unnecessary adjustment postings of Forex difference gains or losses”
does (difference gains/ losses) = (realized/ unrealized gain or loss) ?
In documents (as PO/PI and their posted counterparts) you reflect the actual currency of the transaction - never mind you send hardcopies of these docs “out” or “use internally” as you call it.
This is for record purposes, to fix that transaction had been done in some foreign currency, but even then these docs contain amounts in LCY. Fields containing amounts in LCY may be hidden, but they still exist. This is the only place, where you can see that transaction was in foreign currency - when you post these docs and GL entries are created, these (GL entries) contain amounts ONLY in LCY.
Regarding Forex differences - it depends what are the accounting rules in your country. If you are obliged to use “historical rate” for every transaction - that means strict usage of exact exchange rate of the day of transaction - unrealized gain/loss occurs, if rate has changed between invoice issuing date and payment receiving date.
Besides, it can occur, when PI is in foreign currency and is closed with payment in LCY, but again, the rate has changed and LCY equivalent is not the same anymore as was calculated in PI.
Realized gain/loss can occur only if your business is selling/bying foreign currencies or you do that occasionally.
Hi Modris Ivans,
mine interpretation based on above explanation: amount will still reflect in docs for both foreign currencies and lcy.
(lcy maybe hidden but it does exists, when we post those docs, lcy will be copied over to posted docs>)
when we print and send those docs over to vendor/ customer, amount printed in docs are already based upon vendor/ cust card setup?
(if its blank, by default ought to be lcy)
In NAV we are not defining anywhere that “” this is our Local currency. However we are defining the LCY on the General Ledger setup as a primary key for reporting purpose. We are assuming that our LCY is “”
On the Currency setup we are defining the applicable foreign currencies and giving the Exchange rate of LCY for each forign currency . That is why we are defining the Currency code on the Masters or Transactions if we do transaction in foreign currency. So system will take the Exchange rate of the Currency codeand calculate the LCY value and post in LCY. On the report you can see the actual figures you entered and the code you given on the Currency Code field.If that field is blank, system will take the rate as 1 that is equal to LCY.