Processing (PL settings)

Select Use foreign currency revaluation to revalue invoices paid in foreign currency to their value in base currency.

This uses the exchange rate set in the foreign exchange rate table. The foreign currency exchange rate table should be updated regularly to ensure the correct exchange rates are applied to transactions.

The current system exchange rate is used by default when you enter a transaction. You can override this at the time of entry.

This exchange rate is used when the transaction is converted to base currency and posted to the Nominal Ledger.

As exchange rates can fluctuate between the time the transaction was entered and when the invoice is paid, the exchange rate applied to the transaction and the actual exchange rate when the invoice is paid can differ.

If you select Use foreign currency revaluation, the exchange rates on the two transactions (the invoice and the payment) are compared when they are allocated. If these are different, the exchange loss or gain is calculated and posted to the currency adjustments and creditors control account in the Nominal Ledger.

If you do not select Use foreign currency revaluation, then the exchange rates are not compared and no Nominal Ledger postings are made.

You can also revalue any outstanding transactions in the Period End Routines.

If you require invoices or credit notes above a certain value to be authorised, you can set up invoice authorisation.

1. Select Use Authorisation to enable invoice authorisation.

2. Enter the authorisation amount in the Require authorisation for amounts exceeding box.

   • All invoices or credit notes that exceed this amount must be authorised. The Requires authorisation option in the invoice or credit note is selected and cannot be changed.
   • All invoices or credit notes below this amount are still set to require authorisation by default, but you can change this if they don't require authorisation. The Requires authorisation option in the invoice or credit note is selected, but it can be deselected.
   • To require all your invoices to be authorised, do not specify an amount here.

Note: This applies to invoices and credit notes entered as a single item or as part of a batch.

Outcomes:

• You can't allocate a payment to the invoice until it's authorised, by using Enter transactions > Authorisation.

• Transactions that have not been authorised are assigned an unauthorised query flag (U). You can see this flag on the Supplier Transaction Enquiry.
• Invoices or credit notes that require authorisation are posted to the default nominal unauthorised purchases account. When you authorise the transactions the original postings are automatically reversed. You can then apply your usual nominal analysis.