Freight Bill Detail / Voucher Matching – Currency Conversion

The Payment Currency Code of the A/P Voucher must be equal to the currency of the Freight Bill or else a match will not occur. However, it is still possible that the Payment Currency of the matched voucher is not equal to the default currency of the carrier, as defined in the Carrier’s Profile. If these currency codes are different, the amounts defined for Maximum Pay Variance Positive Amount and Maximum Pay Variance Negative Amount must each be converted to the base system currency before an audit of the variance amount can be performed. The procedure is:

• Retrieve Exchange Rate for the Carrier’s Currency
• Multiply the Variance Amount by the Exchange Rate for Carrier’s Currency to determine Base Equivalent Variance Amount
• Retrieve Exchange Rate for Voucher Payment Currency
• Multiply the Carrier Amount by the Exchange Rate for Voucher Payment Currency to determine Base Equivalent Carrier Amount
• Compare Base Equivalent Variance Amount to Base Equivalent Carrier Amount

Example: A Maximum Pay Variance Amount of 25 Canadian Dollars defined for a Carrier must be used to audit a matched Freight Bill Detail/Voucher for the same carrier in Great Britain Pounds Sterling. The calculated variance between the Freight Bill Detail Amount and the Voucher Amount for the matching voucher is 11 £.

Suppose the exchange rates in effect were as follows:

The process of auditing the variance amount would be as follows:

In this case, the tolerance limit would have been violated.

When converting from a currency other than the base to the base currency, Transportation Manager will multiply the amount by the Exchange Rate defined for the currency. When converting from base currency to another currency, the application will divide by the Exchange Rate defined for the currency. In this case, conversion from base to another currency is not required.