Selling in foreign currencies Video Lecture | Using Brightpearl:Sales Order Processing - E-Commerce

Brightpearl helps you sell to customers
in foreign countries and foreign
currencies this video shows you how have
a look at setting up will create some
sales and allocates and payments it's
important to differentiate between
accounting data and sales data in bright
poll all your accounting data is in your
base currency whatever that happens to
be and sales orders can be created in
any currency you like when they're
invoiced the base currency total of
those sales orders is added into your
accounting system so let's look at
setting up the first thing we need to do
is add a new currency then we create a
price list and assign it to that
currency and then we assign that price
list to your customer to add a new
currency go to set up and then on the
left hand side scroll down to
localization and then click currencies
select the green button to add a
currency and for this example let's add
euro make sure you add the three
character iso code give it a symbol and
then add a rate in here will actually go
and calculate the rate live from
currency servers so it doesn't matter
what you add there once you've added the
currency click update values that
queries a couple of online exchange
servers such as a wander or XE calm and
gives today's rate so here for example
we've got point 7 for 15 euros to the
dollar now that we've created a currency
let's go and create a euro price list so
again in the setup area go to product /
inventory and then go to price lists
let's add a new price list and call it
euro retail any code we like let's just
call it EU r and then here we choose the
currency there's the euros we've just
added and will not show prices including
tax and no this is not a supply price
list this is a retail price list and
then save so we've now got a euro price
list and final thing we need to do is
create a euro customer what we could do
is assign this price list to an existing
customer as well here's an existing
customer that I want to update to use my
euro prices so go to the financial tab
where you can choose your euro price
list and make sure you choose the euro
currency as well and the
and save every subsequent sale will now
be created in Euros now that we're all
set up let's create an invoice a sale
the exchange rate on the sales order is
taken from the rate set on the currency
when the sale is created now it's not
updated automatically if the currency
rate changes because you might wish to
fix this currency for that particular
customer or agree a special rate later
it's the rate on the sales order that's
used when you invoice it so for our
customers on Claude who have set to euro
let's go and create a new sale I'm in
the contact record so I can just click
new sale on the right hand side this
opens up a new sales order where you can
see that the currency is in Euros
there's also a base currency in dollars
which calculates the base equivalent and
then the exchange rate has been copied
from the currencies list let's add a
product and you can see that there's no
price on this particular product that's
because we haven't yet put a euro price
for this item Brightpearl does not
convert any other prices to this
currency by default so you'll have to
export your price list change your
prices and reimport appropriately let's
say that this particular product is 20
euros and you can see that the dollar
equivalent is 2953 let's save this order
and then invoice I'll invoice the sale
and if I go across to the customer's
account balance you can see that 2953
which is the base currency equivalent
has been assigned to the customer from
here forwards everything on the
accounting side is done in your base
currency so if we go to the financial
history for this contact you'll see the
2953 invoice value now what we're going
to do is record a payment against this
invoice and don't forget that all
payments are recorded in base currency
now because the invoice is typically
paid at a different time from the
invoice being created there's going to
be some exchange rate fluctuation
between the two any variance can be
written off against an exchange rate
variance account code so let's go to the
payment allocation screen for this
particular customer there are a number
of ways in which we can do this we can
either go customers
accounts receivable or aged debtors or
where you see an accounting Minitab you
can click that and go to allocate
payment this shows all of the open
invoices for this particular customer
and if the invoice is in a foreign
currency you can see the foreign
currency value here we fill it out as
normal so let's choose a bank account
enter a reference number but what's
different from a standard base currency
invoice is that the amount we pay now is
probably going to be different from the
outstanding amount so what we'll do is
let's say pay 29 we've received twenty
nine dollars from him because the
exchange rate has changed so what we
want to do with the remaining 53 cents
is write it off as an adjustment so if
we type 0.53 and there the sum of these
two actually allocates that invoice in
full and the box goes green on the
right-hand side because there's a value
in the adjustment column we also see
this adjustment menu appear on the
bottom left allocate adjustment to and
by default there's only one exchange
rate code set up and you could add extra
codes in your chart of accounts set up
which you reach from accounting chart of
accounts so now that that's all cleared
let's hit allocate payment all his
invoices are now paid and if we go to
our income statement or profit and loss
we'll see that we've got some
merchandise sales and we've also got
that 53 cents as an exchange rate gain
or loss so what about foreign currency
sales from integrated econ most stores
and marketplaces no problem the currency
for new customers and orders is defined
by the sales channel however so make
sure you've set up that currency in
Brightpearl so that orders can be
downloaded if your sales channel is
creating sales receipts I e-payments
against orders in Brightpearl the
payment is converted into base currency
and due to the nature of rounding and
integration with sales channels it might
be that the sales receipt and the actual
order total sometimes differ by a penny
or so so watch out for that just before
you invoice the sale here we have a
sales order that's come in from one of
our integrated e-commerce channels where
it's already prepaid so the base value
of the order is 7384 with a payment of
7384 so that when we invoice it
all match against each other and that's
all we need to do because the order has
been prepaid the customer account
balance is now zero on the financial
history screen we can see the sales
invoice and then matching sales receipt
if you want to send an accounting
statement to a foreign currency customer
you can do so but because Brightpearl
accounting is all in your base currency
the actual totals will be in base
currency and their currency or the
particular invoice currency will be
shown on the right hand side in brackets
and finally don't forget to update your
currency values regularly it's set up
localization currencies and that takes
us to the end of the video where we have
a look at foreign currency sales