Question

Fixed Exchange Rate in Sales Contract

  • 19 April 2021
  • 6 replies
  • 287 views
M
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Hi Experts,

 

In on of our clients, there is a scenario where they have a contract with multiple currencies. E.g. Rupee and USD. Base currency is Rupee and its ok to deal with it but for USD they have agreed to fixed the exchange rate for the contract. So, the dollar rate should be fetched as agreed in the contract in Invoices.

We are currently using Sales Contract Functionality with AFP and Project Invoice.

Question is “How to get fixed Exchange Rate for Dollar part of the contract where it will reflect the same/fixed rate in invoices and at payments as well.

Please share best practice regarding this scenario. 

Note: Using IFS Application 10 U8.

 

Best Regards

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6 replies

N
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Hi @Mirali , Have you tried defining a currency rate in the ‘currency rates’ window?

As an example if you have 1 record there for a certain conversion, then until there is a new record with a new ‘valid from’ date, existing currency rate will be used for the relevant invoicing flows.

Navigation Path: Accounting Rules → Currency → Currency Rates

 

- Nalaka -
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Thanks @Nalaka Samarasinghe  for the reply. Currency rates are updated every day based on market rates in IFS and are reflected on the transactions where needed.

In the scenario explained above, we need to set a exchange rate which is going to be used only with that particular order. As per your suggestion, if you set a rate in currency rate window, then every transaction on that day will take that currency rate which is not the case.

 

Regards

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@Dharshankumaar Mahendran 

Dharshankumaar Mahendran
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Hi @Mirali 

You cant define such in the sales contract, but you can define that in the project, under  project/currency tab, and if the project is marked as unique billing then we fetch that rate to contract items. Since project is mandatory for the sales contract this way should work. Please check and share your experience.

 

Best Regards,

Linkedin - https://www.linkedin.com/in/dharshankumaarmahendran/
M
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Hi @Dharshankumaar Mahendran 

Thanks for the reply. The currency tab in project window you are referring to will lead us to currency type where we need to create a separate currency type for the specific case. The option set a specific currency type is already available in sales contract window (default tab).

This solution doesn’t seem ideal to me. Anyways, thanks for the answer.

 

Best Regards

 

Mirali

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Dharshankumaar Mahendran
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Hi @Mirali

I’m Sorry that it did not help you well. Will keep you updated if I find a better way to do this.

 

Best Regards,

 

Linkedin - https://www.linkedin.com/in/dharshankumaarmahendran/
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