Date of Currency Conversion

In the Sales Orders module, currency conversion is always carried out on the date of invoicing.

In the Job Cost module, there is a choice between using the date of entry or the date of invoicing.

This choice is made using the Use Invoice Date as Exchange Rate Date system parameter. If this parameter is selected, the exchange rate table which is valid on the date of invoicing will be used for converting amounts to be invoiced in foreign currency to the base currency of the job. If it is not selected, the date of entry will be used. Consider the following example:

The currency of the job is GBP. The base currency is USD. The tax (VAT) is 15%. The exchange rate table is as follows:

Date	GBP	USD
09/30	8	10
10/01 12/31	7.5	10
01/01	7.0	10

In September, one hour is entered on the job on activity A, which has a billing price of GBP 100. The cost is GBP 50. The entry looks like this:

Currency	Reg. Cost	Reg. Billing	Open Billing	Invoiced	Up/down
GBP	40	80	80	0	0
USD	50	100	100	0	0

The open billing price is GBP 100, which is USD 80. When this entry is invoiced in October, the setting of the system parameter mentioned above has the following effect:

If the parameter is selected:

In this case, the exchange rate table valid at the point of invoicing is used, and the following will be invoiced:

Currency	Reg. Cost	Reg. Billing	Open BIlling	Invoiced	Up/down
GBP	40	80	80	80	0
USD	50	100	100	93.75	6.25

This means that due to exchange rate variances, we have lost USD 6.25. The 15% tax levied on the invoiced amount, USD 14, is credited the Tax Payable account.

If the parameter is not selected:

In this case, the exchange rate table valid at the point of entry is used, and the following will be invoiced:

Currency	Reg. Cost	Reg. Billing	Open Billing	Invoiced	Up/down
GBP	40	80	80	80	0
USD	50	100	100	100	0

However, when the invoice is posted, an exchange rate difference entry for USD 6.25 will be made on the A/R Exchange Rate Variances account. The 15% tax levied on the invoiced amount is USD 15, which is credited the Tax Payable account.