Navigating Global Transactions with Levridge’s R3 Feature: Commodity Multi-Currency

By Levridge staff | Updated: Jan 26, 2024 | News | read

Levridge’s R3 feature, commodity multi-currency, empowers companies to engage with customers and vendors in currencies beyond their legal entity’s base denomination. Picture this: a company based in the US conducts transactions with Canadian clients in Canadian dollars. Multi-currency allows for seamless handling of such scenarios. The currency field on customer and vendor records serves as a pivotal element, with transactions defaulting from the selected account record but providing you the flexibility to make currency adjustments.

For instance, a sales order initiated in Canadian dollars means that all associated elements operate in CAD. Yet, inventory transactions, such as adjustments or movements, adhere to the company’s accounting currency. When dealing with varied currencies, the system intelligently applies conversions to maintain coherence. A USD-based company processing a CAD sales order would use the USD unit price, converting it to CAD through predefined conversion rates.

However, like any robust feature, multi-currency comes with its set of considerations. Discount schedules and fee structures must align with the currency of operation, adding a layer of precision to financial agreements. Storage agreements, too, demand synchronization with fee and discount schedules in terms of currency.

In the realm of purchase and sales contracts, the basis currency defaults from the contract currency, ensuring consistency. Even without the multi-currency feature enabled, the system gracefully manages the process, underscoring its adaptability. This dynamic capability extends to customer payments, displaying the amount to pay on an invoice in its designated currency, even when the payment is in a different unit.

In conclusion, commodity multi-currency not only organizes cross-border transactions but also brings nuanced flexibility to financial agreements, making it a vital tool for businesses navigating the global marketplace.