How to Setup Redant to use foreign currency transactions.
Sage / Xero Export VAT Codes Setup
- From the Redant main menu navigate to Maintenance > Setup > Defaults.
- Select Vat Codes from the top menu
- If using Sage accounts, enter the correct Sage VAT ‘T’ codes for Non-EU Export, EU Export and EU Purchases
- If using Xero accounts enter the descriptive VAT settings as defined in the Xero accounting system for Non-EU Export, EU Export and EU Purchases.
- Select Close followed by Save.
Customer / Supplier Setup
- From the Redant main Menu select Modules > Maintenance > Customers or Suppliers
- Create a new customer/supplier record or navigate to an existing one.
- Enter a valid VAT Number. This is only necessary for EU customers who reside outside the UK. For other countries like USA then leave this field empty.
- For a customer, enter a 0 in the VAT rate. However, If the customer is within the EU but resides outside the UK and you DO NOT have a valid VAT number for them, you are required under UK tax law to charge them VAT at the current rate of 20%. If the customer is outside the EU (rest of the world) then enter a VAT rate of 0 (zero).
- For a supplier who is within the EU but resides outside the UK then enter a VAT rate of 0 (zero)
- If the customer/supplier is in the EU but resides outside the UK, then check (‘tick’) the EU VAT field
- If the Customer/Supplier is outside the UK, then enter a country code. All EU country codes should be available in the country dropdown field. To add new ones, from the top menu select Setup > Country and add them to the grid.
- Enter a currency code. DO NOT enter a currency code for any UK customers/suppliers – this should be left empty. The currency selected should be the currency that you have agreed to use when dealing with the customer/supplier. This can be GBP (£) if you want to send or receive invoices in GBP sterling. To add new currency codes, from the top menu select Setup > Currency. Use a simple code for each new currency e.g. EURO for Euro, USD for US Dollars, YEN for Yen etc. followed by a currency description. You may also enter the current exchange rate multiplier for each currency e.g. if we entered 1.12 as the multiplier rate for Euro then £100 would equal 112 euros (£110 x 1.12 = 112 euros)
When entering quotations, job orders, purchase orders or invoices, ALL values used MUST be entered in UK £, exactly the same way when working with a UK customers or suppliers. It is only when you output the required document such as a quotation, invoice or order will it then do the conversion to the selected currency. This way there is no confusion as to what monetary values you are entering.
In each of the modules, quotes, orders, invoices etc, new entries will now use the correct currency code from the customer/supplier record and the exchange rate as defined in the currency table. You can always change the currency and exchange rate for any record in any module by editing the displayed value. To change the currency and rate for a job order, select the word ‘Price Per Unit’ on the job order module window which is underscored to show the link. This will open a window where you can make the changes.
Currency and rates that have been used in a quotation will be transferred to a job order and then to an invoice automatically. These can however be modified separately in each module.