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--- faq:multi_currency_currency_forward_process [2008/03/03 10:44 (16 years ago)] – cliff
+++ faq:multi_currency_currency_forward_process [2008/03/03 10:48 (16 years ago)] (current) – cliff
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 Currency forwards are also called foreign currency forward contracts. They are basically an agreement that obligates its parties to exchange given quantities of currencies at a specified exchange rate in the future. The rate is normally assigned at the time the contract is agreed to, and usually requires a deposit to be given.
-I am going to go through an example process. The date the deposit and contract are initiated will be Jan 1st. The Agreement is to purchase $200,000 on Feb 1st. The advance to the supplier will happen on or after Feb 1st. The local currency will be CAD, and the foreign currency will be USD.
+I am going to go through an example process. The date the deposit and contract are initiated will be Jan 1st. The Agreement is to purchase $200,000 on Feb 1st. The advance to the supplier will happen on or after Feb 1st.
 ===== Process Description =====
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   * This process uses advances
   * There are 2 suppliers: currency forward supplier, and inventory supplier.
+  * The local currency is CAD
+  * The foreign currency is USD
   - Create an advance for 5% on Jan 1st. This advance is $10,000 CAD or 5%. The date and currency data are both Jan 1st.
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   - Please select the USD currency forward account you previously created when creating the advance.
   - When you create the bill and apply the advance make sure that you set the currency date of the advance line to be Jan 1st.
+  * As always your purchase order and bill have to have the same dates for inventory reconciliation. To accomplish this make sure each receiving has a corresponding line on the the bill for the same amount and date. Use the currency date functionality to make this easier.