Currencies - Round Off Card

Automatic Round Off Limit, Automatic Write Off Limit

When entering a Receipt, the Invoice being paid can be treated as fully paid if the amount received is slightly different to that outstanding, providing that difference is within an allowable margin. These fields are used to determine that margin.

For example, if the Round Off Limit is 0.50 and a cheque is received underpaying an Invoice by 0.35, the 0.35 is written off (posted to a write-off Account) and the Invoice is treated as fully paid. But, if the cheque underpays the Invoice by 0.65, that amount remains outstanding.

The Write Off Limit is used when the Receipt is in the same Currency as the original Invoice.

The Round Off Limit is used when the Received Currency is different to that of the original Invoice. A Round Off is posted when the outstanding amount on the Invoice when expressed in the Invoice Currency is less than the Round Off Limit.

In both cases, the figure entered should be in the Currency of the Currency record.

Depending on whether the Currency is a Member of the EMU (set on the 'EMU' card), any Round Off will be posted to the Rate Round Off or EMU Rate Round Off Accounts, while any Write Off will be posted to the Write Offs or EMU Rate Write Offs Accounts, all as defined on card 2 of the Account Usage S/L setting.

Currencies - Text Card

Currencies - Other Card

• Header
  

• 'Span' card
  

• 'EMU' card
  

• 'Round Off' card
  

• 'Text' card
  

• 'Other' card

Tax Code

This field is used in Argentina, where Invoices for export operations should be sent electronically. For this purpose, each Currency has been assigned an official code by the tax authority, and this official code must be included in the electronic file. Enter the official code for each Currency in this field.

The official codes for each Currency will be included in the text files created by the 'S/L Taxes - (Argentina)' export function in the Sales Ledger as follows:

S/L Taxes - (Argentina) - Header option

The official code for each Currency will be exported as field 24 (positions 246-248) in each line in the "CABECERA" file.

S/L Taxes - (Argentina) - Sales option

The official code for each Currency will be exported as field 23 (positions 256-258) in each line in the "VENTAS" file.

S/L Taxes - (Argentina) - Purchases and Include Expenses options

The official code for each Currency will be exported as field 27 (positions 258-260) in each line in the "COMPRAS" file.

Currencies and Exchange Rates in Standard ERP:

• Currencies, including:
  
  • Header
    

  • 'Span' card
    

  • 'EMU' card
    

  • 'Round Off' card
    

  • 'Text' card
    

  • 'Other' card
  
  
• the Currency Round Off setting
  

• the Base Currency setting
  

• Base Currency Rates
  

• Exchange Rates

• Home page for Multi-Currency manual
  

• Home page for Standard ERP manual

Currency Round Off

To enter rounding rules for each Currency, simply click in the first blank line and enter details as appropriate. Click [Save] to save and close, or the close box to close without saving changes.

Currency

Paste Special    Currency register, System module

The Currency for which you wish to enter rounding rules. This can be your home Currency if this is to have different rounding rules to those set in the Round Off setting.

Total

Specify here the rounding rules to be used for Total figures in Invoices, Orders, Purchase Orders and Quotations in the Currency. Leave this field empty to use the rounding rule set in the Round Off setting in the System module. Enter a value as follows:

2

Shows two decimal places in the Total field of any transaction.

10

Rounds up or down to the nearest 0.05.

1

Rounds to one decimal place in the Total.

0

Rounds up or down to the nearest whole unit of the Currency.

-2

Rounds to nearest 100 units

-3

Rounds to the nearest 1000 units... and so on.

When Invoices are approved, any amount lost or gained through the rounding process is posted to the Round Off Account specified on card 1 of the Account Usage S/L setting.

Line

Specify here the rounding rule to be used for the Sum field in each Invoice, Order, Purchase Order and Quotation row. Enter a value as described for Total above. If this field is left empty, Sums will be rounded to two decimal places.

VAT

Specify here the rounding rule to be used for the VAT total in Invoices, Orders and Quotations. VAT in Purchase Invoices and Purchase Orders will also be affected. Enter a value as described for Total above. If this field is left empty, VAT totals will be rounded as specified in the Round Off setting in the System module.

Note that the transaction row sum is rounded as determined in this setting or to two decimal places (whichever is appropriate) before the VAT calculation is carried out.

Base Currency

After entering the Currencies used in your business using the Currency register, you should specify those that are to be used as your two Base Currencies here. Usually, these will be your home Currency and the Euro or US Dollar. You will then enter an exchange rate between the two using the Base Currency Rates setting. Euro rules require that all transactions should be expressable in either Base Currency.

Double-click 'Base Currency' in the 'Settings' list in the System module to open the 'Base Currency: Inspect' window:

Users in transitional countries should also complete this setting as shown in the illustration, with their home Currency as Base Currency 1 and the Euro as Base Currency 2.

Users in the Euro zone retaining their old Currency for comparison purposes should have the Euro as Base Currency 1 and their old home Currency as Base Currency 2.

The Default Base Currency is the Currency which will be used where no Currency has been specified for a Customer or Supplier. This field can be used to set a default Currency even if a simple conversion system is being used (i.e. if Base Currency 1 and 2 are blank).

'Paste Special' can be used from all three fields to ensure that the Currency Codes used are correct.

The Security Controls can be used to prevent Exchange Rates being entered relating a foreign Currency to either Base Currency. It is recommended that users in transitional countries should disallow rates in whichever Base Currency represents their home Currency, to prevent the accidental entry of Exchange Rates between their home Currency and other Currencies (all conversions should be via the Euro). Voluntary users of the Dual-Base system can set these options depending on their individual requirements (i.e. depending on whether they wish to allow the entering of Exchange Rates between one or both Base Currencies). For example, voluntary users of the Dual-Base system in Britain with the Euro as Base Currency 2 will probably wish to prevent the accidental entry of Exchange Rates between the Euro and other Currencies. Remember that a particular foreign Currency should be related to Base Currency 1 or 2 but not both.

Click [Save] in the Button Bar to save changes and close the window. To close the window without saving changes, use the close box.

Base Currency Rates

If there is a fixed exchange rate between the two Currencies, a single record expressing that relationship should be entered to this setting. Otherwise, each time the exchange rate changes, you should enter a new record to the setting rather than modifying an existing record. This ensures an accurate history will be created which will then be used when currency conversions are required when producing reports.

This setting should only be used for exchange rates between the two Base Currencies. All other exchange rates should be stored in the Exchange Rate register in the System module.

Double-clicking 'Base Currency Rates' in the 'Settings' list in the System module brings up the 'Base Currency Rates: Browse' window, showing exchange rates already entered. Click the [New] button in the Button Bar to enter a new record, or select an exchange rate similar to the one you want to enter and click [Duplicate] on the Button Bar.

The 'Base Currency Rate: New' window is shown, empty if you clicked [New] or containing a duplicate of the highlighted exchange rate. In the case of the duplicate, the Date of the new record will be the date of the copied record.

Date

Paste Special    Current Date

The earliest date for which the exchange rate is valid.

The current exchange rate is that with the most recent date: this will be used as a default when entering new transactions.

Base Currency 1, Base Currency 2

Use these two fields to specify the exchange rate, which should be entered as a ratio. In the example illustration, 0.63 units of Base Currency 1 (Pounds Sterling) will buy one of Base Currency 2 (the Euro). Note that if either Base Currency is the Euro, EMU regulations state that the ratio must always show how many units of the other Currency can be bought with one Euro.

Exchange Rates

This register should be used for all Exchange Rates except those between the two Base Currencies. These should be stored in the Base Currency Rates setting in the System module.

Clicking on the [Exchange Rates] button in the Master Control panel in the System module (or selecting 'Exchange Rates' from the Registers menu) brings up the 'Exchange Rates: Browse' window, showing Exchange Rates already entered. Click the [New] button in the Button Bar to enter a new record, or select an Exchange Rate similar to the one you want to enter and click [Duplicate] on the Button Bar.

The 'Exchange Rate: New' window is shown, empty if you clicked [New] or containing a duplicate of the highlighted Exchange Rate. In the case of the duplicate, the Date of the new Exchange Rate will be the current date, not the date of the original Exchange Rate.

Currency

Paste Special    Currency register, System module

Enter the Currency Code of the foreign Currency.

Date

Paste Special    Current Date

The earliest date for which the Exchange Rate is valid.

The current Exchange Rate for a particular Currency is that with the most recent date: this will be used as a default when entering new transactions that are in Currency.

When producing reports, a choice is usually offered whereby all transactions can be converted using the current Exchange Rate or using the Exchange Rate current at the time of the transaction.

!	When an Exchange Rate changes, always create a new record in the Exchange Rate register. Do not change an existing record.

Rate

Enter the Exchange Rate here in the form of a ratio. In the example illustration where the simple conversion system is being used, 1.62 units of the foreign Currency (USD) will buy one unit of Base Currency 1 (GBP). Up to six decimal places can be used.

Users in transitional countries should relate foreign Currencies to the Euro only (not the home Currency), so only that Base Currency field representing the Euro (usually Base Currency 2) should be used. Wherever a Currency is related to the Euro, the ratio must show how many units can be bought with one Euro.

A default Exchange Rate can be offered for each Currency, and minimum and maximum Exchange Rates can be defined. This is done using the 'Span' card of the Currency record.

Exchange Rates - Importing Exchange Rates from National Banks

The Exchange Rate import is a chargeable Cloud Service that is available in many countries. To use it, you must have registered your database using the Automatic Internet Enabler method, as described on the Enabler Key page. Depending on where your database is registered, you may be able to start using the Exchange Rate import service straight away using the default pricing scheme. Please contact your local HansaWorld representative for more details.

Exchange Rates will be imported from the following national banks, depending on your location:

Estonia, Finland, Latvia, Lithuania, Norway, Portugal, Slovenia, Sweden

European Central Bank

Poland

Narodowy Bank Polski

Russia

Центральный банк Российской Федерации

Turkey

Türkiye Cumhuriyet Merkez Bankası

UK

Bank of England

The Exchange Rate import is controlled by the Exchange Rates Settings setting in the System module, as follows:

Update Base Currency Rates

The Exchange Rate import function will update the Exchange Rate register. Select this option if you need it to update the Base Currency Rates setting as well.

Overwrite if Rate exists

By default, if an Exchange Rate record for a particular date already exists, that record will not be updated by the Exchange Rate import function. For example, if you run the import function on August 31 and there is already an Exchange Rate record for that date containing the USD Exchange Rate, that record will not be updated by the import function. Select this option if you need existing Exchange Rate records to be updated.

Use Exchange Rates Service Automatically

Select this option if you would like the Exchange Rate import function to be run automatically once a day. Specify the time when it should be run in the Time field below. You will need to restart the server after selecting this option.

Exchange Rates for VAT Law

By default, Exchange Rates will be taken from the national bank in the country where your HansaWorld contract is registered (this is visible in the Internet Enablers setting in the System module). Select this option if you need the VAT Law in the Company Info setting to determine which national bank will be used.

This option will be useful for companies that have branches in more than one country. For example, if your HansaWorld contract is registered in Latvia, Exchange Rates will be taken from the European Central Bank. But if you have a second Company in your database that represents a branch in Poland, you will need Exchange Rates in that Company to be taken from Narodowy Bank Polski. Select this option in the Company that represents the Polish branch.

Time

If you have selected the Use Exchange Rates Service Automatically option above, specify here the time when the service should be run each day. Bear in mind that national banks tend to publish Exchange Rates towards the end of the day (for example, the European Central Bank publishes its Exchange Rates at 16:00 CET). You should choose a time that is later than the publishing time.

Note that the Use Exchange Rates Service Automatically option cannot be used in the UK, because the Bank of England publishes Exchange Rates at 09:30 the next day.

B2 Cur. Code

Paste Special    Currency register, System module

If you need the Exchange Rates import function to add records to the Exchange Rate register that contain the Exchange Rate between Base Currencies 1 and 2, specify the Currency that is Base Currency 2 in this field. The Update Base Currency Rates and Overwrite if Rate exists options must both be ticked as well. This option is only used in Sweden and the UK.

Date

Paste Special    Choose date

Specify the date whose Exchange Rates you need.

If you are running the function early in the day (i.e. before the national bank has published the day's rates), you will need to choose an earlier date. Bear in mind as well that rates will not be published on weekends or national holidays.

Overwrite if Currency Rate exists on specified date

Select this option if you need any existing Exchange Rates to be updated. This option will be selected by default if you have selected the Overwrite if Rate exists option in the Exchange Rates Setting setting.

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Currencies and Exchange Rates in Standard ERP:

• Currencies
  

• the Currency Round Off setting
  

• the Base Currency setting
  

• Base Currency Rates
  

• Exchange Rates, including:
  
  • Importing Exchange Rates from National Banks
    

  • Reporting

• Home page for Multi-Currency manual
  

• Home page for Standard ERP manual

Exchange Rates - Reporting