Introduction
Welcome to the Empress guide on how to adjust your Bill of Materials (BOM) currency settings. This powerful feature allows you to calculate manufacturing costs in different currencies, a significant advantage for businesses operating in the global market.
Bill of Materials (BOM) Currency Settings - A Business Perspective
Empress provides a flexible platform where you can easily adjust the currency in your Bill of Materials (BOM) prior to submitting it. This is crucial when dealing with suppliers from different countries and when your business operates in multiple currencies. The chosen currency is based on your selected Price List, giving you an accurate estimation of your manufacturing costs in the relevant currency.
For instance, imagine running a business in India (INR) but importing a raw material like plastic from Japan, with your sales invoices listed in the Japanese Yen. Although your primary currency is INR, you may prefer to have your BOM costs calculated in Yen. Empress makes this incredibly simple.
Changing the Currency in BOM
To reflect the costs in Yen, you need to adjust the ‘Rate Of Materials Based On’ setting to ‘Price List’. When you do this, the raw materials used in your BOM will have rates set in Yen. These rates are sourced from the Price List you created for Japan. In this scenario, you might have a buying Price List named ‘Import Japan’.
Other Rate Calculation Options
Empress also offers other alternatives for rate calculation. For instance, if you set ‘Rate Of Materials Based On’ to either ‘Valuation Rate’ or ‘Last Purchase Rate’, the prices will be derived from the Item master or the Sales Invoice respectively.
If you prefer the Item master method, you need to input the Valuation Rate in your primary Currency. Then, in the BOM, the Valuation Rate will be automatically converted to the currency specified in the BOM.
Conclusion
Understanding and utilizing these settings can significantly enhance your ability to manage manufacturing costs in different currencies. This provides greater adaptability and control in your international business operations. For additional information or assistance, please visit our Empress Support Center or reach out to our dedicated customer success team.