The credit limit field on the customer master file is always expressed in the folder currency. When our customers have international operations, and they themselves deal with customers whom they may invoice in different currencies that their own, they presently have to 'convert' the limit into their currency.
Taking this one step further, if an organisation has multiple companies (with different base currencies), and that they have a common database (which is the purpose of multi-legislation), they have to express the credit limit in the currency of the folder! For example, we are dealing with a French installation, implementing now in North America. Their folder being in Euros, the canadian and US users will have to create their customers with a Euro credit limit.
by: Jean D. | over a year ago | Financials
Comments
This seems to be a no brainer enhancement. Customer credit limits should be set using the customer currency. Risk analysis can be performed based on FX rates in the system. The system can convert customer currency credit limits to folder currency. This would also enhance analysis of foreign exchange risk.