This module provides the facility for shipping invoices to be linked to foreign exchange (FX) contracts and to the Accounts Payable system. Foreign Currency module contains the division (product group) in separate databases for which the contract has been purchased, contract number, expiry date, cost, currency code, and exchange rates.
The Committed amount is the total linked to shipping invoices whilst the Utilised amount is the amount already paid to the creditors in the AP system at the given FX exchange rate.
The forward contract itself is not a bank facility. It is an agreement to purchase foreign currency for a specific amount at a fixed exchange rate for a given period of time.
Contract extensions in time; or modifications in Contract Amount; or changes to the Exchange Rate can be maintained within the FX module.
The Committed and Utilised amounts are updated automatically by the system as contracts are linked to shipping invoices and as invoices are paid in AP using the FX contract exchange rate.
The available contract amount is the original amount less the total of Committed and Utilised where Committed includes the unpaid invoices in AP linked to the contract.
There is a maintenance program to create, maintain and display forward contract details. [Read more…]
Divisional setup
