Using Purchase Orders with conversion rate and currency

When purchasing inventory from suppliers, it is normal for the supplier to expect the purchase order in their own base currency. However the supplier’s currency may be different to that as used by Linnworks to maintain the stock value once the item has been delivered and booked in.

To able to do this there are a number of steps to go through to ensure this process returns consistent values. This guide acts as a walk through for all of the potential steps that are required. Our example, will be purchasing an item for US supplier with USD value and convert to our default value of GBP (at this time 1 USD is 0.59 GBP).

Quick Guide

1. Set up supplier in the Suppliers Register

2. Add the supplier to the Inventory Item

3. Create a Purchase Order for the selected supplier

4. Configure the printed version of the PO using Template Designer

5. Configure the email version of the PO using Email Notifications

6. Deliver the Purchase Order

7. Check Stock Item History to confirm Stock Value

Detailed Guide

1. Add Supplier to Suppliers Register

1.1         Select Inventory Control -> Suppliers Register (Fig 1.1) 1.2         Select Click here to add new row (Fig 1.2) 1.3         Enter the Supplier name 1.4         Click on the Edit icon 1.5         Enter the supplier details 1.6         Click Save

Fig 1.1    Fig 1.2

2. Add Supplier to Inventory Item

2.1         Select Inventory Control -> My Inventory (Fig 2.1) 2.2         Use Find to locate the required item 2.3         Click Edit Item 2.4         Select the Suppliers tab (Fig 2.2) 2.5         Click Add New 2.6         Select the Supplier (Fig 2.3) 2.7         Enter the properties for purchasing an item from the selected supplier (Fig 2.4) 2.8         The Purchase Price must be the currency for the selected supplier

Fig 2.1    Fig 2.2    Fig 2.3    Fig 2.4

3. Create a Purchase Order

3.1         Select Inventory Control -> Purchase Orders (Fig 3.1) 3.2         Click New PO 3.3         Select  the Supplier from the drop down list (Fig 3.2) 3.4         Use Add New Item to populate the list of required Inventory Items 3.5         The Purchase price will be pulled from the value added in section 2.7/2.8 (Fig 3.3) 3.6         Set the Currency for the Purchase Order 3.7         Set the Conv. Rate for the Purchase Order (Fig 3.4) 3.8         Once all the required items have been added the Total will be in the currency for the Purchase Order 3.9         Uncheck Pending PO 3.10       Click Save to save the Purchase Order

Fig 3.1    Fig 3.2    Fig 3.3    Fig 3.4

4. Configure the printed version of the PO using Template Designer

4.1         Select Settings -> Template Designer (Fig 4.1) 4.2         Under Purchase Order 4.3         Click Edit 4.4         Double click the Purchase Items table 4.5         Click Add Custom Label (Fig 4.2) 4.6         The custom column row will appear at the very bottom. Click the cell under the column Header Title and type in your column name 4.7         Click the field under the column Name and cell text edit page will appear 4.8         Select Variables -> Conversion Rate (Fig 4.3) 4.9         Click OK for the cell text edit and OK for the edit table 4.10       Click Save and Exit

Fig 4.1    Fig 4.2    Fig 4.3

5. Configure the email version of the PO using Email Notifications

5.1         Select Settings -> Email Notifications (Fig 5.1) 5.2         Double click Purchase order email template 5.3         Select Data Inserts -> Purchase Order -> ConversionRate (Fig 5.2) 5.4         Click Save for email template editor 5.5         Click Save for email notifications

Fig 5.1    Fig 5.2

6. Deliver the Purchase Order

6.1         Select Inventory Control -> Purchase Orders (Fig 3.1) 6.2         Check Open button 6.3         Click Edit PO 6.4         Click Deliver All (Fig 6.1) 6.5         Click Save

Fig 6.1

7. Check Stock Item History to confirm Stock Value

7.1         Select Inventory Control -> Stock Item History (Fig 7.1) 7.2         Use Find to locate the required item 7.3         Look out for the note containing the purchase order number with conversion rate used (Fig 7.2)

Fig 7.1    Fig 7.2