Add Invoice Currency per Customer Order

Explanation

Use this activity to enter an invoice currency code and/or invoice currency rate type to a customer order. The invoice currency entered in the customer order is the currency that the customer is going to be charged, for that specific order. The invoice currency rate type entered in the customer order will be the applicable currency rate type for the customer invoice. 

Using a different invoice currency than the currency applicable on the customer order is mainly used when the accounting currency for the company has a high fluctuation. With a different invoice currency the company can protect their accounting currency against the variation in the exchange rates, and the rate changes will affect the charged price for the customer.

Upon creating the customer invoice, all the prices, taxes and discounts are converted to the invoice currency with the exchange rate from the invoice currency rate type for all part lines, rental lines and charge lines. 

 

It is possible to define default values per customer to be automatically passed to the invoice currency and invoice currency rate type fields when creating a customer order for that customer.

•  A default value for invoice currency can be added in the Currency field on the Customer page together with enabling the toggle Use Invoice Currency as Default for Customer Invoices on Customer page, Sales tab.

• A default value for invoice currency rate type can be added in the Default Currency Rate Type field on the Customer page.
  

 Note: If a project is connected to the customer order header the currency rate type connected to the associated project will be applicable for the order.

 It is not possible to edit the invoice currency or invoice currency rate type if an invoice is already created for the order.

 

When using a different invoice currency than the order currency and creating the invoice, the Sales Price/Base from the customer order is first recalculated with the exchange rate from the entered invoice currency rate type. Then the recalculated Sales Price/Base is converted to the invoice currency with the applicable exchange rate from the invoice currency rate type.

The examples below show two cases where the invoice currency is used.

 

1. Base Currency (Accounting Currency) as the Invoice Currency.

Base Currency = TRL
Order Currency = EUR
Invoice Currency = TRL

Customer Order:

Rate (TRL/EUR) = 5
Base Price (TRL) = 20
Curr Price (EUR) = 100

During the order process, the exchange rate might have changed between TRL/EUR.

When creating the invoice:

New Rate (TRL/EUR) = 10
Base Price (TRL) = 10
Curr Price (EUR) = 100

Customer order invoice (with invoice currency conversion):

Rate (TRL/TRL) = 1
Base Price (TRL) = 10
Curr Price (TRL) = 10

 

2. Third Currency as the Invoice Currency.

Base Currency = TRL
Order Currency = EUR
Invoice Currency = USD

Customer Order:

Rate (TRL/EUR) = 5
Base Price (TRL) = 20
Curr Price (EUR) = 100

During the order process, the exchange rate might have changed between TRL/EUR.

When creating the invoice:

New Rate (TRL/EUR) = 10
Base Price (TRL) = 10
Curr Price (EUR) = 100

Customer order invoice (with invoice currency conversion):

Rate (TRL/USD) = 20
Base Price (TRL) = 10
Curr Price (USD) = 200

 

Prerequisites

• A customer order header must have been entered.
• The customer order header cannot have a Canceled or Invoiced/Closed status.
• The currency code used as the invoice currency should be defined in the Currency Codes page.
• The currency rate type used as the invoice currency rate type should be defined in the Currency Rate Types page.
• Currency rates for the used currency codes and rate types should be defined in Currency Rates page.

 

System Effects

• As a result of this activity the invoices created for the customer order will be created in the invoice currency.
• All the prices, taxes and discounts will be converted to the invoice currency with the exchange rate from the invoice currency rate type.
• When creating a return material authorization from the customer order, the values for invoice currency and invoice currency rate type will be passed from the order to the return material authorization to be used for credit invoices.
• When creating collective customer invoice, only orders with the same invoice currency and invoice currency rate type can be grouped in the same collective invoice.
• When creating shipment invoice, only orders with the same invoice currency and invoice currency rate type can be grouped in the same shipment invoice.
• Advance invoice, Prepayment-based invoice, Self-billing invoice and Staged billing invoice cannot be created when the invoice currency added to the customer order is different from the order currency.
• When using an invoice currency, different from the order currency, for the customer order the differences in prices, discounts and amounts is not reflected in the Detailed Statistics – Order Entry.

Pages

Customer Order

Activity Diagrams

Enter Customer Order