3 Scenarios Illustrating the Need for Multi-Currency ERP
Multi-Currency ERP Scenario #1: A Euro:Dollar Exchange
He is an accountant in France calculating the value added tax in Euros for last month. She is an accountant in the US accruing tax expenses from offices of the same company in all countries to prepare the financial statements in US dollars. Multi-currency ERP can make the euro: dollar exchange automatically and freeze it at the rate as of a selected moment in time.
Multi-Currency ERP Scenario #2: Currency Fluctuations During Projects
He is a sales person in Mexico preparing a quote in pesos. His backup documents include estimates from suppliers and subcontractors in several countries. Payments to those suppliers will be made eventually in pesos and the people in each of those countries wants to ensure a profit in their own money. She is a project buyer in Brazil who will evaluate the quote and eventually accept it. The work will be complete in three months but the terms of the quote require payment at the exchange rate at the time of acceptance. Will the value of the real to the peso go up or down between acceptance and completion? Either way, her multi-currency ERP can calculate the correct payment when it becomes due.
Multi-Currency ERP Scenario #3: Calculating ROI
He is an engineer working from India. He has worked for weeks on cost estimates for a plant improvement he hopes to install in Australia. All his calculations use rupees as the base currency. His multi-currency ERP can convert those rupees to Australian dollars. The ratios are the same but the currency can fluctuate. She is the manager of that plant and needs to decide if the hours and dollars saved will provide enough return on her investment. The investment to her is in Australian dollars but the asset is maintained at the corporate headquarters in Canadian dollars and it affects the stock value which is traded on the New York exchange in US dollars.
Business today is carried out around the globe and around the clock. Almost all of us have some international dealings. It is a good thing our ERP systems of today can keep the currency correct for us.
Featured white papers
ERP Software Pricing Guide
Get the latest pricing information on over 80 popular ERP systems, and learn how to budget for your ERP project in our free guideDownload
60-Step ERP Selection Checklist
Get the comprehensive checklist for your ERP selection projectDownload
ERP Demo Guide & Scorecard
Master your ERP demo with 5 easy steps using our free guide (includes demo scorecard)Download
Top 10 ERP selection criteria (including checklist)
The most important ERP selection criteria you should keep in mind during your selection process.
Why a food specific ERP system is a must-have
Key features and requirements food companies should consider when searching for an ERP
How to conduct a thorough ERP audit
The types of ERP audit, and step-by-step instructions on how to audit your ERP system