Wednesday 5 July 2017
As the business progresses towards the global direction, the need to handle the multitude of currencies will be something you must do. With the high competition in the global market thanks to the internet, it requires companies to be ready to handle various currencies in various countries. Any organization that handles international markets is expected to face US Dollar and other unavoidable currencies.
When a company wants to buy in any of the goods from the outside, the same currency problems will arise. Therefore, to overcome this, organizations need to adopt a new module that can overcome the problems of international currency. It comes with an ERP module that is exclusively able to deal with an unlimited amount of currency and can easily be integrated with existing ERP modules, then this will be a lifesaver for the company.
When making international transactions, the software must deal with many currencies in the sales and purchase module, therefore taking into account the exchange rate and the gains or losses incurred during the transaction are also worth considering.
One of the main problems faced by organizations dealing with international transactions is the fluctuating currency market. This makes budgeting for international exchange almost impossible. In the accounting aspect, different currencies can be handled in different accounts and hence the necessary provisions must be made to calculate cross-border transactions well.
To deal with fluctuating exchange rates, some companies note the exchange rate with the banks they face. For this, ERP can be useful by forecasting the expected volume of international exchange in each currency based on existing data.
ERPs can also provide currency reports on transactions and how much of their gains or losses due to exchange rate fluctuations on individual countries. This can alert management to increase margins for certain transactions whose deals mostly end in red due to exchange rates.
ERPs that handle many currencies also allow users to take reports about the domestic currency, US Dollar and other major currencies (Pounds, Euro, etc.). This can be useful for marketing departments to easily localize reports based on the location of their new clients.
This can certainly simplify the various tax formulations and import / export associated with international transactions. Companies must choose one country to pay taxes in that currency. This will facilitate the accounting process as well.
Organizations with branches in various locations around the world can benefit greatly from multi-currency ERP modules. It would be easier to consolidate the values stored in different currencies in different locations into a single currency selected by the end user. It can be used to get a share value statement at a given point in time.
With cloud-based ERP solutions, upgrades and additional modules will be easier to adopt because there will be no change in the organization or workflow. Cloud-based ERP only opens new modules to access and automatically connects to existing modules that are international.
Which modules benefit from multi-currency?
All ERP modules can benefit from the multi-currency module, starting sales reports, purchasing, inventory, budgeting, payroll, accounting, and business can get all the advantages of ERP international exchange. All types of organizations can benefit from multi-currency ERP modules. The rest is about how we choose the right ERP software for it all
