Since the result of the EU Referendum back in June, currency exchange rates have understandably been more volatile than usual. This has caused problems for many businesses importing goods as the fluctuation in exchange rates means that these are outdated more quickly, resulting in the held costs for items often being inaccurate. One of the main causes for this other than the fluctuating rates is that often purchase orders can be split over multiple deliveries. This means that in a post-referendum environment where exchange rates are constantly moving up and down, the costs associated with a single purchase order can often vary from line to line.
With this being the case, it is now absolutely paramount for any business importing their goods from overseas to ensure that they have an effective method of managing their purchase order exchange rates on an individual line basis. This is because without the ability to handle this successfully, businesses will find that the costs held against their products slowly become more widely inaccurate, meaning visibility of profitability becomes less clear. By not keeping correct exchange rates, staff will find that margin figures become more and more skewed, resulting in chances to close sales through offering additional discount are missed and some sales orders are in fact less profitable than first anticipated. Therefore in order to counteract these post-referendum fluctuations, it is important for businesses to ensure they have enhanced control over the exchange rates affecting their purchase order costs.
Benefit From Effective Management Of Exchange Rates During The Post-Brexit Vote Turbulence
With OrderWise, companies are already presented with comprehensive functionality to manage their currency exchange rates, including the ability to record the rate used against a purchase order and also have a direct real-time feed to OrderWise from service provider XE. You can read more about this latter feature HERE.
Now in version 11.8 of OrderWise, a new enhancement has been made that enables users to store an exchange rate against an individual purchase order line. Once the relevant setting has been activated, users will be able to edit the exchange rate field found against the line information tab within a Purchase Order when the supplier being used is recognised as foreign. Also by using this in-conjunction with the pre-existing batch edit purchase order lines functionality, OrderWise users can benefit from updating numerous line exchange rates at once, allowing for simple, accurate and efficient management.
With the addition of this great new feature, businesses using OrderWise can now benefit from even greater control over how their imported goods are costed. By being able to keep exchange rates updated both quickly and easily, OrderWise users can ensure that accurate profitability figures are maintained during post-Brexit vote fluctuations.
For more information on OrderWise Purchasing, download the brochure or watch our video.
To discuss your requirements in more detail, contact us today on 01522 704083.