Foreign Currency Purchasing Overview

The StreamV Purchasing System allows you to purchase items from your vendors in your local or “house” currency, and it also allows you to purchase items from your vendors in foreign currencies.  This section describes how the purchasing system handles foreign currencies as PO Requisitions and Purchase Orders are created on the system.

In general, the StreamV Purchasing System can obtain a valid foreign currency price for an item from the following sources.

      From a Special Cost record for the vendor and item in the currency being processed.  You can set up foreign currency special cost records for specific vendor, item, quantity, and currency combinations, and if they are present and active, they are used by the system to determine the “target cost” for a given purchase order or requisition line during requisition and PO creation.  If a special cost record is set up for a vendor, item, currency, and quantity combination, and the PQDS flag in the special cost record is set to Y, the system will also check for PQDS records and adjust the special cost based on the PQDS information.  PQDS (Price Quantity Discount System) are records that can be set up in order to take quantity or value discounts for specific items based on the vendor, item prodline, item class and quantity being purchased.  They store a factor that is used to adjust the special cost up or down based on the quantity or value being purchased.  Special cost records can be set up as active (status A), or they can be set up as standby (status S).  An active special cost record is automatically used by the system during PO entry and requisition creation if the record contains the best price for the item, currency, and vendor combination.  A Standby special cost record is a special cost record that is available during purchase order entry but that has to be selected manually.  Standby special cost records are used to handle situations in which the special cost only applies to certain purchases for the item (i.e. who you are shipping the product to, vs. just the item and vendor you are purchasing from).  A standby special cost record is only available during purchase order entry (they are not used by the system during automatic requisition creation as they must be selected by the operator).

      From a QVL (qualified vendor list) record for the vendor and item in the currency being processed.  You may set up a foreign currency QVL record for a specific item, vendor and currency, and if a qualifying QVL record exists for the item vendor and currency being processed, it is automatically used by the system during requisition and purchase order creation.  If PQDS (price quantity discount system) records have been created in the system and the records apply to the vendor, quantity, and item being ordered, these records are also used to adjust the QVL foreign currency cost when calculating the target price for the PO line. 

      From a manually specified price.  You may select a vendor, a foreign currency and an item during purchase order entry and if the system does not automatically find a valid price for the combination you may manually specify the correct price for the item, vendor and currency combination.  When the system is able to calculate a foreign currency price for a purchase order or requisition line, the PO price will be set to the correct amount for the currency being processed, and the PO price source will be set to the correct value based on where the price was obtained (CP from a contract price, QVL if the price came from a QVL record).  If the system is unable to find a valid price for the item in the foreign currency being used, the system will set the price in the PO or requisition line to 999999 and the price source to INV.  In this case, the price needs to be manually set to the correct value.  The Purchase Order Entry program and the PO Requisition Management programs will not allow you to save a PO line until a valid price (i.e. a price other than 9999999) has been entered for the line.

Please Note: When the system is creating foreign currency requisition or purchase order lines, the system does NOT try to default a foreign currency price based on your local currency inventory information.  The inventory next cost or other cost in your local currency adjusted by the current exchange rate – does not necessarily match the actual vendor price for the item in the foreign currency.  For this reason, a Special Cost or a QVL record is required to define the purchase price for each item/vendor combination in a specific foreign currency. 


PO Requisition Creation

Purchase Order Entry

Commission Cost Issues