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If you’re thinking of expanding your operations and considering doing business internationally, then having an ERP system capable of processing multi-currency is essential for your business practices. In this post, we highlight the key benefits of utilizing multicurrency features found in Microsoft Dynamics products such as Microsoft Dynamics GP and Microsoft Dynamics NAV:
Receive Up-to-Date Information on Current Exchange Rate
With multi-currency ERP, exchange rate calculations and reports are performed and updated periodically. These updates provide invaluable insights towards when would be the right time to perform any exchanges with a partnering country, such as when to process transactions when the exchange rate is lower and to avoid excessive spending once the exchange rate increases.
Automation Capabilities
Depending on which Dynamics product you are currently using, there are a number of functions and features that are designed to simplify tasks requiring multi-currency reporting and exchanges. With multi-currency in ERP, foreign currency is tracked and can be automatically converted into financial reports at your leisure. Additionally, for organizations with firms in foreign countries, multi-currency allows payroll to be sent to their international firms and immediately convert local currency to whichever country your agency resides in.
Establishing Fixed Rates
Due to daily fluctuations in the exchange rate, it is important to consider specific rates towards transactions with overseas customers and/or vendors. For example, a customer has requested to purchase one of your products. You had provided a quote for them yesterday and ship out the product today. However, the customer will only pay the bill tomorrow. For total transparency regarding what rate will be used towards the transaction, so long as the rate at shipment was finalized, then the rate will be locked in during payment regardless of future changes in the exchange rate.
WebSan Solutions specializes in Multi-currency management in Microsoft Dynamics GP and NAV. Click here for our free ERP whitepaper, and feel free to contact us with any questions, comments, or concerns that you may have.
Heimdall Sham, Digital Content Creator, WebSan Solutions Inc., a 2017 Microsoft Modern Marketing Innovation Award Winner