When you specify a foreign currency on a purchase requisition (PR) or purchase order (PO), the system calculates two values:
Total Cost, expressed in the foreign currency
Total Base Cost, expressed in the base currency (your company's currency)
Your base currency is US$ (US dollar). You enter a PR for gaskets, to be ordered from a French company.
On the PR tab, you choose EUR (Euro) in the Currency field.
On the PR Lines tab you enter:
Quantity: 25
Unit Cost: 3.14 (in Euro)
Using the active exchange rate of 1.17726 for the EUR, the system calculates two values and displays them on the PR tab:
Total Cost: (25 x 3.14 Euro) = 78.50 (in EUR)
Total Base Cost: (78.50 Euro x 1.17726 exchange rate) = 92.41 (in US dollars)
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