With UK Prime Minister Theresa May announcing this month that her plan is to trigger Brexit by the end of March 2017, the value of the pound has continued to see rapid ongoing fluctuations in the wake of the June referendum Leave result. This included at one point in early October, the pound recording its lowest value against the US dollar since 1985 and lowest value against the Euro for five years. With these fluctuations showing no signs of slowing even a few months after the referendum, it continues to highlight the importance for UK businesses to keep on top of their current exchange rates.
For businesses purchasing and importing goods from overseas during this exchange rate turbulence, maintaining tight control over currencies applied to purchase orders and invoices can be difficult. Often companies will need to manually go into orders and invoices to update details to reflect current exchange rates, only for them to then change again shortly afterwards. This is not only a waste of time, but also leaves space for margin figures and reports to display erroneous information. Therefore, businesses shipping in goods from abroad should ensure that they have the necessary tools available to keep their exchange rates regularly and automatically updated.
With OrderWise, businesses are already provided with extensive functionality to manage currency fluctuations. This includes the ability to have an automatic direct feed from XE.com into their version of OrderWise and then have purchase and sales order exchange rates recalculated to meet current levels using an intelligent system utility. You can read more about this service HERE.
Now in version 11.10 of OrderWise, two new features have been added that provide further control over how exchange rates are applied to supplier costs and invoices.
Choose Which Rate Is Used When Adding A Supplier Invoice
The first of these new additions is a new setting that allows users to control which exchange rate is used on purchase order invoices. With some users preferring to use the exchange rate applied to the actual purchase order as it may have been done on an ad-hoc basis whereas others simply using the one recorded against the actual supplier, we have added a new setting that offers users the flexibility to choose the one they wish to use on the invoice. By simply activating or deactivating the new “use system exchange rate” setting, businesses using OrderWise can gain complete control over the exchange rate that is applied to their supplier invoices.
Keep Your Estimated Cost Method Automatically Updated With New Scheduled Service Task
With supplier prices often regularly changing, having a good method of accurately estimating item costs is important for any business looking to forecast company cash flow and maintain their purchasing budgets. OrderWise already provides extensive estimated costing methods, including average cost, last cost, cheapest cost, standard cost and more. One of the most popular of these options is main supplier last cost and now a new enhancement has been added to allow this to be kept regularly updated with a scheduled service task.
This scheduled service task can be set up to run automatically over a user-defined period, taking into account any exchange rate fluctuations and recalculating the estimated costs back into the base currency. This will then be applied to each item that is set up to use this estimated cost method.
With the introduction of these highly useful new features, businesses raising purchase orders with foreign suppliers and importing their products from overseas now have additional functionality available to help them keep well on top of any currency fluctuations. By keeping exchange rates automatically and regularly updated, OrderWise users can ensure that their supplier costs and product margins are kept as accurate as possible.
For more information on OrderWise, you can download our brochures or watch our videos.
To discuss your requirements in more details contact us today on 01522 704083.