Re: Item Costing in multiple currencies - USD and Euro

Tom, The mechanics of coverting costs to Euros is straight forward. Just link 
to the Exchange Rate file by providing a currency ID and date. The use the 
exchange rate to convert your base currency (e.g. USD) to Euros.

Given the strong Euro, selecting the "right" exchange rate becomes critical. 
For example, if you use the same exchange rate for both the invoice and cost 
amounts, your Euro gross margin percents will be the same as you USD gross 
margin percents. This begs the whole exchange rate impact question.

I can think of three ways to get a more useful Euro cost for your products:

  a.. Use the exchange rate in effect when you set your "frozen" standards.
  b.. Base your exchange rate on your inventory turnover. For example, if you 
turn your inventory four times a year, use the exchange rate from 90 (365 / 4) 
days ago.
  c.. Activate IM's LIFO/FIFO file and use the item's last receipt date to get 
the applicable exchange rate. (There are many variations on this theme).
Bob Tenney
Bob Tenney Solutions, LLC
MAPICS - FRx - Presence - Crystal Reports
828-526-8976

Visit www.tenneypubs.com for books about
IFM, COM, G/L Interfaces
Info WorkPlace, Cost Accounting, 
FRx, and PRESENCE
----- Original Message ----- 
From: "Ashworth, Thomas R." <TAshwort@xxxxxxxxxxxxxxxx>
To: <mapics-l@xxxxxxxxxxxx>
Sent: Wednesday, January 21, 2004 10:08 AM
Subject: Item Costing in multiple currencies - USD and Euro


To All,
 
I have been tasked to find a way to display the extended item cost of
invoiced shipments [see MBDDREP field DDAAGQ] in Euros to allow analysis
of gross profit margin in the Trading Currency.  I understand that
MAPICS EPDM/PDM will support a single currency for item costing per
environment while COM will allow multiple currencies in support of
Foreign Pricing, Contracts and Order-level overrides.
 
Has anyone else run into this situation -or- have any ideas on costing
analysis in currencies other than the base/default.
 
 
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Thomas Ashworth
Business Applications Manager
Altec Lansing Technologies, Inc.
 



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