Multi-currency sales

This article explains how foreign currency sales are handled when multi-currency is not enabled. See Foreign currency sales to learn how Brightpearl works when multi-currency is activated.

Brightpearl will allow you to process sales quotes, orders and invoices in a foreign currency.

When manually entering an order the currency is taken from the customer. When orders are downloaded the currency is provided by the sales channel. The invoice will always be created in the customer/order currency.

Brightpearl does not handle multi-currency accounts receivable, bank accounts or accounting. All customer account balances are converted to base currency, all bank accounts and payments are recorded in base currency and all accounting journals are converted into your base currency.

Foreign currency customers

Customers can be assigned the currency in which they wish to be quoted prices and invoiced. A foreign currency customer should also be assigned a price list in the same currency.

A customer will always be quoted prices and invoiced in the currency assigned to their own record.

How to create a foreign currency customer

  1. Search for and open the customer record.
  2. Select the  Financial tab .
  3. In the  Price list  field select the foreign currency price list. This will determine the product prices applied.
  4. In the  Currency field  select the relevant currency. This will determine the exchange rate used when converting the amount for posting to accounts in your base currency as well as the currency symbol used.

Foreign currency invoices

An invoice will always be created in the currency assigned to the customer. When creating foreign currency sales both the customer and the customers price list should set to use the same currency.

Accounting created for foreign currency sales will always be created in your Brightpearl account base currency by using the order exchange rate. The exchange rate is defined by the Brightpearl currency in settings.

How is the order base currency value calculated?

The base value is calculated on a line-by-line basis by converting the total line value in the foreign currency using the exchange rate in the order and rounding to 2 decimal places. The amount for each line is then added together in order to reach the total base value.

Why is the base value calculated in this way?

Since each row could potentially be posted as a separate ledger entry (with different account codes or tax codes), we need to convert to base currency then round each ROW to 2 decimal places. Summing these rounded rows will not necessarily add up to the same amount as if you'd just converted the foreign order total into base currency. If the total is converted rather than each line it can result in a mismatch between Brightpearl and your customer's system. By converting on a line-by-line basis you shouldn't encounter this issue.

How to invoice an order

  1. Search for and open the sales order.
  2. Click the Invoice button.

How to invoice sales orders in batches

  1. Go to  Sales > Recent Sales/Quotes .
  2. Use the filters to search for the relevant orders.
  3. Use the checkboxes to select the orders to be invoiced.
  4. Click the  Invoice  button at the top of the list.

Receipting foreign currency payments

All customer account balances are converted and viewed in your base currency. When receipting payment for a foreign currency sale it must also be recorded in your base currency.

If the base currency value received by payment does not equal the base currency invoice amount, an adjusting entry is made to the exchange rate gains and losses account.

How to receipt a foreign currency payment

  1. Search for and open the customer record.
  2. In the Financials box on the right-hand side, click Allocate payment.
  3. Select the bank account into which the payment was received.
  4. Select the date the payment was received.
  5. Enter the payment reference .
  6. Mark the relevant invoices as paid.
  7. Enter any differences for exchange rate differences in the Adjustment field.
  8. Select the adjustment account code .
  9. Check the box to email a receipt if required.
  10. Click the Allocate the payment button. This is mark the invoices and orders as paid and post the accounting journal.

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