In order to bring you the best possible user experience, this site uses Javascript. If you are seeing this message, it is likely that the Javascript option in your browser is disabled. For optimal viewing of this site, please ensure that Javascript is enabled for your browser.
Login  |   Cloud ERP  |   Home  |   qad.com



  •     QAD Glossary

  • Advanced Exchange Rates
    Normally, for foreign currency transactions, the system uses the exchange rate that is valid on the posting date. However, certain European countries have the following legal requirements regarding exchange rates:
    The tax amounts recorded by the purchaser must exactly agree with the tax amounts in the local currency shown on the supplier invoice. Currency conversions on supplier invoices must be based on the invoice date.
    Tax amounts on customer invoices must be recorded and displayed in the local currency and converted using the exchange rate valid at the tax point date.
    To facilitate these requirements, you can specify at entity level which date the system must use when retrieving the exchange rate for accounts receivable and accounts payable transactions.
    For accounts receivable, you can choose to retrieve the exchange rate based on the posting date or on the tax point date, and for accounts payable, you can choose to retrieve the exchange rate based on the posting date or on the invoice date.
    To use advanced exchange rates, you must add the following two fields to the General tab of Entity Create or Entity Modify using design mode:
    Retrieve AR Exchange Rate Using
    Choose to calculate AR exchange rates based on either the posting date or on the tax point date. The default is the posting date.
    Retrieve AP Exchange Rate Using
    Choose to calculate AP exchange rates based on either the posting date or on the invoice date. The default is the posting date.
    Accounts Receivable
    When calculating exchange rates for accounts receivable, the system uses the date specified in the entity to calculate exchange rates for invoices posted from sales orders and for invoices created manually in Customer Invoice Create (27.1.1.1).
    For invoices created from sales orders, the tax point date is the shipment date. If there are multiple lines on an order, the tax point date is the shipment date for the last order line shipped. If the shipment date is not recorded or available, the tax point date is the sales order due date.
    Note: For invoices created from sales orders, you can only use advanced exchange rates for the transaction currency to statutory currency conversion. The ability to use advanced exchange rates for the transaction currency to base currency conversion will be available in a later QAD EE release.
    When you create invoices manually in Customer Invoice Create, if the Retrieve AR Exchange Rate Using field is set to Posting Date, the system retrieves the exchange rate using the date specified in the Posting Date field of the customer invoice. If the Retrieve AR Exchange Rate Using field is set to Tax Point Date, the system retrieves the exchange rate using the tax point date on the Tax tab of the customer invoice.
    Accounts Payable
    In Supplier Invoice Create, if the Retrieve AP Exchange Rate Using on the entity is set to Posting Date, the system retrieves the exchange rate using the date specified in the Posting Date field of the supplier invoice. If the Retrieve AP Exchange Rate Using field is set to Invoice Date, the system retrieves the exchange rate using the date specified in the Invoice Date field of the supplier invoice.
    In Supplier Invoice Create, you can edit the statutory currency invoice amount. Using design mode, you can add the following three fields to the General tab of Supplier Invoice Create:
    SC Rate
    Displays the exchange rate used to convert from the transaction currency to the statutory currency.
    SC Invoice Amount
    This field displays the invoice amount converted to statutory currency. However, you can edit the statutory currency amount.
    Statutory Currency
    Displays the statutory currency defined for the domain.
    The grid on the Tax tab of Supplier Invoice Create contains a number of new fields that allow you to view more information on the base and tax amounts for the base and statutory currencies. You can make these columns visible by right-clicking on any of the grid’s field headings and selecting Columns.
    BC Base Amount (DR), which displays the taxable portion of an invoice in base currency.
    BC Base Amount (CR), which displays the taxable portion of a credit note in base currency.
    BC Tax Amount (DR), which displays the tax calculated on an invoice in base currency.
    BC Tax Amount (CR), which displays the tax calculated on a credit note in base currency.
    SC Base Amount (DR), which displays the taxable portion of an invoice in statutory currency.
    SC Base Amount (CR), which displays the taxable portion of a credit note in statutory currency.
    SC Tax Amount (DR), which displays the tax calculated on an invoice in statutory currency. However, you can update the amount.
    SC Tax Amount (CR), which displays the tax calculated on a credit note in statutory currency. However, you can update the amount.
    If you edit the statutory currency tax amount, you can save the posting even if the posting is not balanced in base currency or in statutory currency, within certain limits.
    To balance the posting, the system automatically creates an additional posting line that balances the whole transaction. The additional posting line is made to a Rounding Differences system account. The balancing posting is created if the unbalanced amount is sufficiently small; that is, less than or equal to the maximum number of lines on the SI Posting tab, multiplied by the rounding unit.
    Example:  
    The rounding for a currency is two decimal places, the threshold is .005, and the rounding unit is .01.
    If a posting has four lines, the limit is:
    4 * .01 = .04.
    In this case, any balance differences of .04 or less are posted automatically to the Rounding Differences system account.
    Supplier Invoices in Open Item Adjustment
    When you create supplier invoices indirectly in Open Item Adjustment Create, the system retrieves the exchange rates to use differently, depending on the type of transaction performed.
    For supplier prepayments recorded in Open Item Adjustment Create, the system always retrieves the exchange rate to use based on the posting date, regardless of the setting of the Retrieve AP Exchange Rate Using field on the entity.
    For supplier adjustments in Open Item Adjustment Create, the system always retrieves the exchange rate to use based on the setting of the Retrieve AP Exchange Rate Using field on the entity.
    Modified Programs for Advanced Exchange Rates

    Modified Programs for Advanced Exchange Rates
     
    Menu
    Label
    Program
    7.13.4
    Invoice Post and Print
    soivpst.p
    25.13.5
    Open Item Adjustment
    BOpenItemAdjustment.Create
    27.1.1.1
    Customer Invoice Create
    BDInvoice.Create
    28.1.1.1
    Supplier Invoice Create
    BCInvoice.Create
    36.1.1.2.1
    Entity Create
    BCompany.Create
    36.1.1.2.2
    Entity Modify
    BCompany.Modify
    36.1.1.2.3
    Entity View
    BCompany.View