WorkGuru allows you to raise purchase orders in currencies other than your default. This allows you to continue to accurately track your landed costs in your default currency regardless of which currency you are invoiced in. WorkGuru uses the exchange rate to convert the foreign currency back to your default currency when receipting the order. It is a requirement using currencies in WorkGuru that currencies are also enabled in your integrated accounting system. When transacting in alternate currencies, all the reporting in WorkGuru will be displayed in your default currency.
- Enabling and Automating Purchasing in other Currencies
- Applying Alternate Currencies on Purchase Orders
Enabling and Automating Purchasing in other Currencies
From the WorkGuru menu go to Accounting -> Settings. The currency settings are at the bottom of the accounting settings page
Set the following currency fields:
- Default Currency - Default currency in WorkGuru. Must match the currency your integrated accounting system is defaulted to also. The default currency need to match the ISO 4217 Currency Codes.
- Alternate Currencies - Enter the currency codes you purchase in separated by line. The codes need to match the ISO 4217 Currency Codes.
- Do you sell in Foreign Currencies - When alternate currencies are enabled, by default it is only available for purchasing. If you need to invoice in an alternate currency, set to Yes.
Click Save to update the currency settings.
Suppliers can be setup to automatically default to their invoicing currency. This enables less double-entry when adding the supplier to the purchase order.
- Supplier Tax Rate - Accounting tax rates, usually set to a tax free code for overseas or alternate currency suppliers.
- Currency - Default invoice currency.
- Supplier Price Tier - If you maintain pricing for products in a specific pricing tier (supplier price tiers only).
For the products that are purchased in an alternate currency, it is important that the product's cost price is saved in the currency the supplier invoices you in. This means that the cost price and the sell price on a product may be in two separate currencies. (eg Buy in USD, Sell in USD).
If you buy and sell a product in multiple currencies, set the default pricing in the currency you use the most and use WorkGuru's price tier functionality to save any alternate pricing. Suppliers can then be assigned to a specific tier to default their pricing to a specific currency.
When creating pricing tiers to specifically track alternate cost pricing, ensure that the Is This For Suppliers Only field is set to Yes. This toggles the price tier from sell pricing to buy pricing.
For complex pricing models, you can also utilise the product's alternate suppliers. This lets you assign specific pricing in the currency a specific supplier invoices you in.
Applying Alternate Currencies on Purchase Orders
When raising a new purchase order of any type (stock, project or advanced) and there are alternate currencies configured, a Currency/Exchange Rate fields are displayed on the purchase order details. All other receiving and costing functions are the same as the usual workflows.
Select the currency required for the purchase order. WorkGuru will get the current exchange rate from the European Central Bank, or you can override the rate with your own.
When entering line items, ensure that the unit cost's values are the selected currency (not your default). As per normal, the costing process is simply matching the WorkGuru purchase order values and quantities to the Supplier invoice. The purchase order detail page will display the order's currency for reference. It will also display the AUD conversion for reference.
When you receive the PO, you have an opportunity to update the exchange rate again, which will apply the currency conversion as a landed cost on your purchase lines. WorkGuru will create the stock journal in your default currency, at your specified exchange rate.
However, when the bill is sent to Xero, it is sent in the selected currency. Ensure that Xero is enabled to accept multi-currency transactions.