DESKTOP EDITION CLOUD EDITION SERVER EDITION GUIDES FORUM

Exchange rate idea


#1

Hi,

I think we could have a better way of managing exchange rate. We don’t need to predefined currency for customers. When creating Quotes/invoices, we should be able to change currency and if no exchange rate have been set in settings. Allow to add exchange rate directly when creating Quotes/invoices/etc.

image

I want one customer to be able to pay with one customer with different currencies

In my country, people use 2 differents currencies.

Thanks


#2

Sorry but this is in contradiction with how multicurrency accounting should work by law.

What you are doing is simply appointing which exchange rate you use to emit an invoice in a different currency then the one of your company.


#3

In accounting, an entity must have a functional currency, (legal home currency) and other currencies.

You cannot have two currencies as home currency.
There are many places where people use the dollar or pound mostly for transactions but the functional currency maybe something else.

In summary, it is bad accounting.

But having the exchange rate entry feild in places where the currency in use is not the functional currency is a good idea


#4

Maybe, I wasn’t so clear in my explanation.

Business has one legal home currency (for accounting too) but we do accept others currencies. What I actually want is the possibility for one customer to pay with different currency, The way manager set it up, it’s not possible for a same entity to pay with different currency.

The screenshot, I sent earlier is an example of what I want.


#5

Currently Manager requires you to set up a different Customer, Supplier, etc for each currency you want to use for that 3rd party.

Presumably this is because the software is not able to handle multiple currency transactions within a subaccount eg Account Receivable/Customer A but needs Accounts Receivable/Customer A/Eur and Accounts Receivable/Customer A/$ etc


#6

You get my point. I think it would be better if Manager could handle that with one account. Because we have a lot of customers/suppliers/etc…

Imagine we have to create two account for 2000+ customers, it’s painful work.


#7

You should firstly have bank accounts in the currencies which is not in your functional currency.

In my organisation for example, we have dollar accounts, pound Sterling accounts, euro accounts and local/home currency accounts.

Proper accounting requires that you have Bank accounts in these currencies. In Manager, you can even create a cash account in any currency available in the currencies list.

In receiving money, receive money into an account (cash/bank) with a currency that is same as the currency the customer is paying you with.

You will see a field with “Optional” as default text (field is located after tracking codes field), enter local currency equivalent as at that date there. Gains and losses on the exchange rate will be correctly calculated by manager and posted correctly.
So what you need is to have bank/cash accounts in the other currencies set up. Applies to when paying money too.


#8

I think the developer behind Manager could think about that @Tut @lubos


#9

I am not the developer, @maxon. I am one of the forum moderators.


#10

Think about what ???
Everything that you have asked - “What I actually want is the possibility for one customer to pay with different currency” - is already existing within Manager and was been explained in @Abeiku response.

The solution in short is to have either Bank or Cash accounts for the relevant currencies.


#11

I think she/he is proposing that you should be able to post transactions in different currencies to a single 3rd party account (customer, supplier,etc ) rather than having to set up a separate account in different currencies for each 3rd party.


#12

exactly. @Brucanna this is what I’m proposing


#13

You don’t need to set up any separate account. Whatever transaction you are having with a customer or supplier the method I explained about is the way to go. Any other method is practically impossible in the world of commerce.

Manager’s features to handle foreign currency transactions is surprisingly advanced compared with many popular multi currency accounting applications.

Whatever foreign currency you handle will pass through an account in or out of the organization, and those accounts must be in those currencies to help in the computation of exchange gains or losses. So the method I showed you is the best. The customers or suppliers or even employees must also be created in those currencies.
This is how it is done every where.


#14

It is not a question of having bank accounts in different currencies. That is a given and Manager handles that perfectly well.

But you can not invoice a customer in euros and the same customer in $ or another currency. Each customer has a designated currency. The change that is requested is to be able to invoice a customer in different currencies or to purchase from one supplier using different currencies etc


#15

Tell us which are the cases in which you invoice a customer in different currencies. There are rules established by law for the invoices to/from foreigner companies. What he is asking will create only a big confusion and a lot of errors.


#16

It is not done anywhere every customer or supplier have their main currency (functional currency).
There maybe times a company may have a branch in maybe the UK and another in maybe US or Germany. In that case create different account for them when dealing with them. No one will issue you an invoice in Dollar today and issue you another in Euros tomorrow, no one company will do that.

Manager will not have features that will encourage bad accounting.


#17

I am not condoning or even suggesting that this is a good idea - I was only trying to explain what Maxon was asking for as, from the comments I got the impression that it wasn’t clear to everybody.

I’ll leave it to Maxon to explain why he wants this change and how it would be of benefit.


#18

Correct, but that is due to their clearly made and repeated comments relating to payments;

  1. I want one customer to be able to pay with . . . different currencies
  2. What I actually want is the possibility for one customer to pay with different currency

Nothing in those comments implies invoicing, besides, even an advanced company like Amazon doesn’t allow a single customer to be invoiced in different currencies, you have to have separate accounts.


#19

I’m sorry for my language @Joe91 , I didn’t mean to make any accusations. We are all trying to help each other out.


#20

No offense taken - we should probably close the topic as I think anything that can be said about multi-currency operations has been said