For this reason, dealerships often operate in both local currency and in US dollars to protect themselves against inflation.
For example, imagine you issued a parts invoice for $12,000 a few months ago when the exchange rate was $5. Now, the customer returns to pay but the exchange rate has risen to $7. This creates a difference that must be managed correctly to avoid losing money.
Taking exchange rate differences into account helps protect your business from currency fluctuations, ensuring that revenue remains stable and predictable despite market variations.
Autologica’s solution
Autologica Sky DMS allows for the automatic and precise management of exchange rate variations that occur between the issuance of the invoice and the time of payment, facilitating the generation of the corresponding debit note.
The DMS provides a detailed report of the customer’s account, both in local and foreign (e.g. US dollars) currency, simplifying reconciliation and avoiding accounting issues. Additionally, you can configure debit notes to affect only the balance in local currency, ensuring compliance with tax regulations and improving efficiency in managing current accounts.
Benefits
- Helps maintain stable profit margins, protecting the company’s profitability.
- Saves time by facilitating accounting management.
- Ensures accuracy of customer accounts in both currencies.
Did You Know That Autologica Can Manage Multiple Currencies
Dual Currency Accounting
Each accounting entry in local currency automatically generates its parallel entry in foreign currency. Autologica keeps this parallel following the IAS (International Accounting Standards).
This allows information to be kept in a stable currency, and comparisons to be made with previous years, without the need to adjust the national currency accounting for inflation.
Dual Currency Invoicing
Autologica Sky DMS allows invoicing in local or foreign currency; invoices are printed and reported to the fiscal entity in the corresponding currency.
Depending on the conditions agreed with each customer, you can invoice in foreign currency and then collect in foreign currency, automatically generating exchange rate differences. This is especially useful when long-term credit is granted, and you need to maintain the purchasing power of the sale.
Cashiers and Banks
Autologica Sky DMS let you manage bank accounts and cashiers in multiple currencies, such as local currency, dollars, euros, and yen. Transfers can be made between accounts in different currencies, and transfers can be received and issued from banks in different currencies. Bank statements and cash reports in various currencies allow for accurate reconciliation with movements reported by banks.
In addition, checks, credit cards, and promissory notes can be received and issued in different currencies, simplifying cash balances and improving multi-currency financial management.
