Foreign Exchange Rates

WizCount is a multi-currency software. Documents can be issued and transactions posted using various currencies, exchange rate differences can be updated, and revaluated reports can be issued. This screen is used for updating the currency and index exchange rates.

Date: The date for which you want to update exchange rates.

Location: The order by which currencies are sorted in the Exchange Rates table. You can change the location on the Update Currency Names screen.

Code: A short code that describes the currency. This code is displayed when recording the journal entry and F/X documents.

Currency: Currency description (Swiss franc, Japanese Yen, etc.).

Rate: The currency or index exchange rate on the given date.

Notify future dates? Check this checkbox for WizCount to display a warning message if the updated date is farther than the system date.

Notify large rate deviations. When difference between the current exchange rate and the previous exchange rate (up to 7 days) is larger than- 5%? Select this option for WizCount will display a warning message when the entered rate is 5% (and above) higher than the previous rate of the same currency, provided that the previous rate was recorded up to 7 days earlier. (A difference of more than 5% usually indicates a typo).

 

Inflation percent

When issuing reports and revaluating transactions by their Due Dates, it is required to determine how to revaluate transactions with a future Due Date. Since the revaluation date is a future date, the exchange rate is still unknown. These transactions can be revaluated by the last known exchange rate. However, during times of inflation, such a revaluation may be misleading because the exchange rate is expected to be higher on the Due Date. WizCount allows such future transactions to be revaluated based on an inflation forecast – when a future rate is used, the software will increase the last known rate by the forecasted inflation %, and revaluate the transaction at this forecasted rate.

The current screen is used to set the forecasted annual inflation % for each of the currencies. The inflation % for each currency should be set separately, as the NIS-Dollar inflation rate may be different from the NIS-Euro inflation rate due to the Euro-Dollar inflation rate.

If no forecasted inflation % is recorded, the software will revaluate future transactions by the last known rate, without any increase, as if the forecasted inflation is 0%.

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