With Multi-Currency foreign supplier management is streamlined. Teams can easily manage supplier contracts, change orders, payment applications, and expenses in different currencies. The system then automatically converts all foreign currencies to the project’s base currency and displays exchange rate gains and losses for better cost control.
1. Accessing & Setting Multi-Currency for the Project
- Project Admins are the only individuals who have permission to access Multi-Currency.
- Within Cost Management, select the Settings tool. Multi-Currency is under the General Settings tab within the Currency section.
- Multi-Currency needs to be turned on to utilize it. To do so, under Foreign Currencies, toggle it on.
- To add a foreign currency, select Add. From the drop-down, select the currency you would like to add. Then input the current exchange rate.
- Important Note:
- The exchange rates set are used by default and can be updated in Settings as required throughout the project lifecycle. The default exchange rates can also be overwritten by users with the latest rates every time a transaction is made, as shown in later sections of this guide.
2. Using Multi-Currency
With Multi-Currency turned on, project teams can now easily create and manage foreign supplier contracts, change orders, payment applications, and expenses in the set currencies.
Foreign Supplier Contract Management
- To change the currency for foreign supplier contracts from the base project currency, select the contract to open the flyout panel.
- Within the Details section of the flyout, select the Currency drop-down, and choose the appropriate currency.
- The exchange rate set in Settings for that currency will appear in the Exchange Rate field. It can be edited from here if the rate has since changed.
- The Schedule of Values are entered in the foreign currency. The system automatically converts it to the base currency.
- You can easily toggle between the two currencies to view the Unit Cost and Amount change in either currency.
Foreign Supplier Change Order Management
- Change orders can be entered and managed in the currency of the foreign supplier as the project progresses.
- The system will automatically recognize the currency set for a supplier within their contract, so when a potential change order (PCO) arises, you or the supplier (with the appropriate permission level) can generate a PCO.
- The Proposed and Committed amounts are entered in the supplier’s local currency then the system auto-converts it to the base currency.
- Arrow icon displays to indicate the change order information is converted. To view the information in both currencies, hover over the field. The Exchange Rate can be edited from here by selecting the pencil to override what was defined in Settings.
Foreign Supplier Payment Application Management
- Payment applications can also be entered and managed in foreign currencies.
- Within the Cost tool, select the Cost Payment Application tab and open the details view for the appropriate supplier.
- The system will automatically recognize the currency set for a supplier within their contract, so Work Completed will be entered in the local currency. And the system will auto-convert it back to the project’s base currency.
- The system will automatically recognize the currency set for a supplier within their contract, so the Unit Cost and Amount are entered in the local currency. The system will auto-convert it back to the project’s base currency.
- Like Change Orders, an arrow icon displays to indicate the information has been converted. To view the information in both currencies and exchange rate used, hover over the field.
- Exchange rate can be overridden via the flyout panel. Once an expense is “Approved” the field will be locked and rate can’t be changed.
3. View Currency Gains & Losses within the Budget Overview
The system automatically pulls all cost activities into the budget overview and converts foreign currencies back to the project’s base currency. So, as actual expenses start rolling in, teams gain instant visibility into currency gain or loss on actual (realized) and projected (unrealized) costs.
New Realized & Unrealized Currency Columns
- To view the budget overview, select the Budget tool.
- With the release of Multi-Currency, three new columns are available: Realized Currency Gain or Loss, Unrealized Currency Gain or Loss, and Forecast Exchange Rate.
- Use the gear icon to turn them on.
- Realized costs are calculated based on whatever the exchange rate was set at on the day each actual cost was approved.
- Unrealized (projected) costs are based on anything not yet claimed for.
Making Forecast Adjustments
- To make a forecast adjustment based on currency gain or loss select the more-menu (three-dots) next to the item name.
- Then select Forecast Adjustments. An Edit Forecast Adjustment box will appear.
- From the “Add from currency gain or loss” drop-down menu, choose one of the following options:
- Realized Currency Gain or Loss
- Unrealized Currency Gain or Loss
- Total Currency Gain or Loss
- When done, select the “X.”
Generate Budget Report in Different Currency
When using Multi-Currency, you can generate a full project report converted to a foreign currency.
- Within the Budget tool in Cost Management, Select the Export drop down, select PDF Report
- Click Report currency drop down, Select the currency desired to generate PDF report, Click Create Report.