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Table of Contents (Online Help)

Forex Buying

To be able to carry out any Forex transactions, you must first define the Exchange Rates at Support Files/Exchange Rates. Loan Performer also requires you to define the reason or purpose for the forex purchase and this can be preset at Support Files/Forex Purpose .

How to purchase a foreign currency 

To purchase a foreign currency you go to Cash/Forex buying and a screen like the one below shows up:

• Transaction Day: Here you enter the date when the transaction takes place, e.g., "01/04/2021"..
• Branch: From the drop down list select the branch that is handling the transaction,e.g., "KA".
• Voucher No: Here you enter, if available, the voucher number of the transaction, e.g., "002100".
• Cost Centre: From the drop down select the cost centre to which this transaction belongs e.g "Finance". The cost centers should have been set at the support files at Support Files/Cost Centers.
• Cash Out (Base Currency): From the drop down select the Cash Account for the Base Currency. This is the account where you draw the money to use for the purchase of forex from clients, e.g., "Cash Till 1".
• Cash Balance: This field will automatically display the balance on the base currency cash account, e.g., "30,924,020".
• Buying: From the drop down list, select the label of the currency that you are buying from your client, e.g., "USD"..
• Rate when buying: This filed will automatically be populated with the current buying rate. e.g., "2,500". The rate for the period should have been registered at Support Files/Exchange Rates.
• Cash In (Foreign Currency): From the drop down, select the Cash Account for the Foreign Currency that you are buying. This is the account where the forex that you buy from clients will be posted e.g "Cash till 4".
• Cash Balance: This field will automatically display the current balance on the foreign currency cash account, e.g., "2,961".
• Mid-Rate: This field will automatically be updated with the Mid Rate as set at Support Files/Exchange Rates
• Amount in Local currency: This field will automatically be refreshed with the local currency equivalent of the foreign currency amount that you are purchasing.
• Amount in foreign currency: Here you enter the amount of foreign currency that you want to buy from the client, e.g., "1200.00".
• Switch: You can determine how much foreign currency a client should bring for a given amount of local currency. If you click on the Switch button, the text box for Amount in local currency becomes editable. You can now enter the amount in local currency in order to know how much foreign currency you can purchase from a client. Note that before you click on the Switch button this field is read only.
• Not allocated: This field will automatically be filled with the balance of the local currency offered for the purchase of foreign currency. Note that if all the amount offered for the purchase is used up, this filed will read zero.
• Purpose of Transaction: From the drop down menu, select the purpose of e.g "Bank deposit". The purposes of transaction should have been defined at Support Files/Forex Purpose otherwise it will not appear under the drop down menu.
• Foreign Exchange Commission: This field will automatically display the forex charge on the transaction. The commission charges should have been defined as at System-/Configuration/Forex Transactions.
• Total Transaction Amount: This field will automatically be refreshed with the total amount of the transaction after deducting off the foreign exchange commission charges, e.g., "3,000,000".

Note that
1. For security reasons and accountability, LPF will generate a foreign cash Sale form that has to be filled and signed by the Forex seller/buyer and the institution transacting in the foreign currency.

2. This form will have the authorized dealer, Amount in local and local currencies, the exchange rate and the serial number (002100) for ease of reference.

Click on the Save button to complete the transaction.

Note that you can view the forex transactions for the day by looking at the forex report at Cash/Forex report.

Click on Close to exit.

Related Topics

Contact LPF live support for more information
This service requires an Internet connection.