Configuration and Settings

The default currency settings could be configured based the following:

  • Company-Hdr

    • Company settings in organization applet

  • Branch-Hdr

    • Default branch in applet settings

    • Default branch in personal settings within an applet

    • Branch settings in organization applet

  • FI-Item-Hdr

  • Entity-Hdr

  • Website-Hdr

  • Ledger-Hdr

So, the question is, which currency should take precedence, when we are creating a financial document (be it Sales Invoice, Purchase Order, or any other financial transaction)? Should we follow the "FI-Item-Hdr" currency, or should we follow the customer’s default currency?

The short answer

When in doubt, follow the currency setting for the branch in the organization applet !

The next natural questions that pops up would be, why? why would the branch currency setting take precedence?

We cannot use the "Company-Hdr" currency setting to overwrite the branch setting, because it is possible for a company to have multiple branches, with some branches operating at certain location that defaults to a different currency.

We are not using the FI-Item-Hdr’s currency because when a financial document is issued, strictly speaking, we will only allow users to choose a list of fi-items where the currency of the fi-items are the same as the currency has been initialized (wen a branch is chosen). This initialization happens before a product is chosen, selecting the branch is one of the first thing that happens on a screen for the users of the applets.

We are also not using the currency set in the "Entity’s Hdr" because the currency configuration for the Entity Hdr is just the "preferred currency" for a specific customer or suppliers. In real life situation, it is possible for these entities to transaction in multiple currencies, not just the "preferred currency" configured in the entity-hdr.

Selling the same products in multiple currencies

In Akaun Platform, we have the following: * FI-Item (stored in bl_fi_mst_item_hdr/line/ext)
User can have multiple FI-Item , one for each currency, and pointing to the SAME Inv-Item for inventory management purpose. The FI-Item can be created, edited, updated using the [h2_doc_item_maintenance_applet]. * Settlement-Methods (stored in bl_fi_mst_item_hdr/line/ext)
Each settlement method will point to a cashbook, and each cashbook can be configured for a single currency only. It is important that the currency of the settlement methods must match with the currency of the cashbook. * Inv-Item
The Inv-Item is where we keep track of the inventory, adding and deducting the stock based on the "Location / Store" accordingly.

When we are storing the currency information into the following tables, we need to follow the following conventions:

Assuming we issue two sales, one in local currency (MYR) and the other one in foreign currency (USD). And we have configured the company default currency to be in MYR.

Table 1. Columns related to currency in bl_fi_generic_doc_hdr
Column name Data Type Description Local Currency Invoice (MYR) Foreign Currency Invoice (USD)

foreign_ccy

boolean

This is to identify whether the record is in foreign currency amount. If this is true, refer to base_doc_guid to identify record in base currency

false

true

base_doc_guid

UUID

If this is a foreign currency document, this will be a foreign key pointing to bl_fi_generic_doc_hdr.guid of the Generic Doc Hdr in base currency

Null

guid ⇒ foreign key pointing to base document

base_doc_ccy

varchar(3)

This is the based currency, following the company settings ⇒ default currency

MYR

MYR

base_doc_xrate

numeric(70,22)

This value is calculated based on base_doc_amount / foreign_doc_amount

1 (strictly speaking, this can be null, because the document is already in local currency)

4.4 (assuming USD-MYR exchange rate is 4.4)

doc_ccy

varchar(3)

This is the document currency

MYR

USD
Table 2. Columns related to currency in bl_fi_generic_doc_line
Column name Data Type Description Local Currency Invoice (MYR) Foreign Currency Invoice (USD)

foreign_ccy

boolean

This is to identify whether the record is in foreign currency amount. If this is true, refer to base_doc_guid to identify record in base currency

false

true

base_doc_line_guid

UUID

If this is a foreign currency document, this will be a foreign key pointing to bl_fi_generic_doc_line.guid of the Generic Doc Line in base currency

Null

guid ⇒ foreign key pointing to base document

base_doc_line_ccy

varchar(3)

This is the based currency, following the company settings ⇒ default currency

MYR

MYR

base_doc_line_xrate

numeric(70,22)

This value is calculated based on base_doc_amount / foreign_doc_amount

1 (strictly speaking, this can be null, because the document is already in local currency)

4.4 (assuming USD-MYR exchange rate is 4.4)

doc_ccy

varchar(3)

This is the document currency

MYR

USD