How to configure and optimize use of exchange rates

This page explains how to configure and optimize the use of exchange rates.

In FBO One a default local currency is set, should you wish to bill in an alternative currency FBO One will automatically calculate the ‘to be billed’ rate in the desired currency. Currencies can also be linked specific forms of payment or price agreements.

To do this, you are required to complete the following steps:

Define the currencies
Define the exchange rates
Define the form of payment
Define the clients Default form of payment
Define alternative currency (optional)

Below, we guide you through the steps that you are required to optimize your international billing needs.

Step 1: Define currencies

In the ‘Backoffice’ section of the ‘Administration screen’ screen you will find the majority of the required fields. To start click ‘Currencies’

You will find one currency already exists. This currency will be your local currency which will be your default billing and accounting currency. For this exercise the default shall be the European single currency (EUR).

Click the ‘Add new’ button, enter the 3 letter currency code followed by ‘Save’. The example below shows our secondary currency to be the US Dollar (USD). If you require additional currencies please add them now by reproducing the previous steps.

Step 2: Define Exchange rates

We are required to define the Exchange rates. Do this by clicking on the ‘Exchange rates’ button, found in the ‘Back office’ section of the ‘Administration’ screen.

Complete the 4 required fields. Please note as seen below the ‘Valid from’ format is dd-mmm-yy. The rate entered below can calculate EUR to USD and/or USD to EUR.

Should you require rates to be changed weekly or monthly you can reproduce the above steps adding new rates to show a similar result to below.

Step 3: Define the Form of payments

In order to define the form of payment go to the ‘Forms of payment’ found in the ‘Back office’ section of the ‘Administration’ screen. Add the new form of payment ‘Cash USD’ and complete the required fields similar to the example below.

Once created you are required (for accounting purposes) to add the ‘Custom values’ to the new form of payment. Found just beneath the form of payment.

From this point you are able use FBO One to calculate and produce invoices in a different currency depending on the form of payment.

In order to test this, create a test order with a form of payment in local currency ‘Cash Euro’. Using the ‘Print’ tab found in the order screen open the ‘Handling order report’. This will show a Performa invoice in EUR.

Return to the ‘Edit order’ tab and change the form of payment to ‘Cash USD’ and click ‘Save’. Proceed to the ‘Print’ tab and open the ‘Handling order report to find a performa invoice in USD.

Step 4: Define clients Default payment

Price agreements linked to specific clients can be used to bill the client in their desired currency. To do this, go to the contact and click ‘Default payment’ followed by ‘Add new’.

Select the required payment type, which for this test case is ‘Cash USD’. All Orders created for this debtor will automatically be generated as a ‘Cash USD’ payment form. The Performa invoice will be in USD, needless to mention should you wish to override the form of payment you can do this in the ‘Edit order’ screen.

Step 5: Define Alternative currency in order to show the default and secondary currency on the same invoice

In the ‘Back office’ section of the ‘Administration’ screen click on ‘Administrations’ followed by ‘Edit’.

Scroll down to the Alternative currency field. Add with the same currency as the default ledger currency, followed by ‘Save’.

This allows the invoices total amount to be shown in both the clients preferred currency and the handlers local currency.