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Exchange Rates Overview

The Exchange Rates screen allows users to setup different foreign exchanges for their business for different time periods.  This is a manual screen which requires users to manage internally either daily or monthly.  

This screen is available under the "setup" menu option in Accounting.

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Defining the fields

Overall, there are three different currency types that will be setup and used in Softrip: Quote, Cost, and Pay currency.  

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The following provides an overview of the fields that are available to setup in the exchange rates screen.  

Base Currency

This is the currency that users will have the company setup in.  The currency that is associated to the company in the "companies" screen is the base currency that is entered here.

Type

Users will need to setup the exchange rates for the three different currencies available by selecting the currency from the drop down menu. 

Code

Enter the three letter currency code into this field. 

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Example:

If a user wants to setup an exchange rate from their base currency of USD to sell in EUR in reservations, they will enter USD into the BaseCurrency, Q in the Type field, and EUR in the Code field.  

Exchange Rate

The exchange rate field is the actual numeric value used to calculate the rate. 

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Example:

Exchange Rate code C is (LocalCost * ExchRate = BaseCost).
Exchange Rate code Q is (BasePrice * ExchRate = QuotePrice).
Exchange Rate code P is (ApplyLocal * ExchRate = ApplyBase).

Begin Date

The beginning booking date of the period in which this Exchange Rate is applicable.  Can not come later than the Ending date.

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Note: This is a manual process.  Users can make updates to these dates internally as needed based on the current exchange rate values.   

End Date

The ending booking date of the period in which this Exchange Rate is applicable.  Can not come before the beginning date. 

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Note:  This is a manual process.   Users can make updates to these dates internally as needed based on the current exchange rate values.   

Calculation Example

Given the following:

  • Company base currency is USDhas its bank accounts in USD

    • This is the Base Currency

  • Service costs are in EUR

    • This is the Local Currency

    • Cost is 100 EUR (= Local Cost)

  • Reservation is quoted in GBP

    • This is the selling or Quote Currency

  • Markup rule is 1.10 (10% markup)

  • Exchange Rates loaded:

    • Type C (Cost exchange rate)

      • 1.20

      • 1.00 EUR = 1.20 USD

    • Type Q (Quote exchange rate)

      • 0.80

      • 1.00 USD = 0.80 GBP

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  1. Convert local service cost (EUR) to base cost (USD)

    1. LocalCost * CostExchange = BaseCost

    2. 100.00 EUR * 1.20 = 120.00 USD

  2. Apply markup to get base price (USD)

    1. BaseCost * Markup = BasePrice

    2. 120.00 USD * 1.10 = 132.00 USD

  3. Convert base price (USD) to quote price (GBP)

    1. BasePrice * QuoteExchange = QuotePrice

    2. 132.00 USD * 0.80 = 105.60 GBP