Scenario

My suppliers are often located in a different country, how does Linnworks handle POs in other currencies?

Solution

If your supplier does business in another currency, it is possible to create the PO in that currency and specify the conversion rate so that Linnworks can adjust the stock value correctly, when the stock is booked in, to match the currency used in your Linnworks system. Purchase prices need to be added to your stock items in the currency specified by the supplier.

• When creating your PO, specify the Purchase Order's Currency & Conversion Rate values
  •  Currency - This is the currency you are using to pay for this purchase order. The available currencies are taken from your Manage Currencies list, and the supplier's default currency will be automatically selected.
  •  Conversion Rate - This is the conversion rate for the currency used for the purchase order and your default currency for Linnworks. It is automatically populated with the conversion rate saved against the chosen currency in your Manage Currencies list. Please note that this value can be entered manually, and any manual changes can be reverted by clicking the reset button.  
  • For instance, if you are ordering in Swiss Francs, where 1 GBP = 1.24 CHF, specify the currency as CHF and the conversion rate as 1.24
• When stock is delivered, the value of the stock will be calculated backwards by dividing the total cost of the order items by the conversion rate
  • This can be seen on the stock item history
  • In the above example, if the purchase order items were 250 CHF, then divided by the 1.24 conversion rate gives a stock value change of 201.61 GBP

Outcome

POs in currencies other than your Linnworks currency should have a conversion rate specified. Linnworks will then display the PO in the supplier's currency, but calculate the stock value change in the Linnworks currency when the order items are delivered, based on the given conversion rate.