Select the multi-currency mode you wish to support with the database.
•No multicurrency is the obvious default mode. The end users are limited to a single currency.
The end user does not need to select a currency when he deals with product prices, when he creates a sales opportunity or a financial document – an invoice.
Example: all prices are expressed in Euro.
•The variable mode supports variable prices for products in several currencies.
When the end user creates a product to a sales opportunity or financial document (invoice), its price gets calculated.
Example: lounge chair X costs 100 Euro (€). When this product is added to a sales opportunity or invoice in dollars, the price in Euro is converted into a dollar ($) amount.
Advantange – maintaining the prices: we call this mode “variable” because the system administrator can adjust the exchange rates on a regular basis. 1 Euro may correspond to $1 now, to $1.1 in a month, to $1.2 in two months etc. Adjusting the Euro-dollar exchange rates in the database (in table SYS_CURRCYRATES) by running the server-side script CurrcyRates.js suffices to correct the prices of, say, 50 products at once.
•The fixed mode supports multiple currencies with a fixed price for products in each currency.
When a product is created or updated, the end user enters a fixed price for it in each supported currency. (With the exchange rates in hand, the user calculates the various prices himself and enters them in Efficy.)
When this product is added to a sales opportunity or invoice, the appropriate prices in Euros or dollars are used, depending on the local market. (When the user creates a sales opportunity or invoice, he selects its currency. The account manager for Europe selects the Euro as currency of the sales opportunity, his colleague for the American market selects the dollar etc.)
Example: lounge chair X costs 100 Euro and $120. When this product is added to a sales opportunity or invoice for the European market, the price in Euro (100) is used. When the sales opportunity or invoice concerns the American market, the price in dollars (120) applies.
Maintaining the prices: when the Euro-dollar conversion rate changes, the system administrator needs to adjust all appropriate prices. When the currencies fluctuate, the administrator for instance has to modify the price in dollars of, say, 50 products, no less...
The multi-currency mode can be modified afterwards. It is however not advised to change the mode lightly. (After a change, all operations apply the new mode to the entire database. Do fill out the product prices and conversion rates the system needs.)
Next step: define the consolidated currency.
related parameter: ConsolidatedCurrency
more info on multi-currency support: Supporting multiple currencies