Overview

iVendNext’s Freeze Exchange Rate feature lets you lock exchange rates for transactions, helping maintain consistent and predictable financial records. It’s useful for avoiding rate fluctuations that affect your statements. This article explains how to enable and use it.

1. What is the Freeze Exchange Rate Feature?

1.1 Definition

The Freeze Exchange Rate feature, also known as Stale Exchange Rate, allows you to manually set and lock exchange rates for transactions. Once enabled, the exchange rate field in transactions becomes non-editable, and the system uses the specified rate for calculations.

1.2 When to Use It

• Stable Rates: When you want to use a fixed exchange rate for a specific period.

• Budgeting: To maintain consistency in financial planning and budgeting.

• Critical Transactions: For high-value transactions where exchange rate fluctuations could have a significant impact.

2. How to Enable the Freeze Exchange Rate Feature

2.1 Enabling Stale Exchange Rates

1. Navigate to Accounting > Accounting Masters > Accounts Settings.

2. Under the Currency Exchange section, locate the Allow Stale Exchange Rates field.

3. Check the box to enable the feature.

4. Save the settings.

2.2 Refreshing iVendNext

After enabling the feature, refresh your iVendNext account to apply the changes. This ensures that the exchange rate field in transactions becomes non-editable.

3. Using Frozen Exchange Rates in Transactions

3.1 Setting the Exchange Rate

Once the Freeze Exchange Rate feature is enabled, you can manually set the exchange rate for transactions:

1. Create a new transaction (e.g., Sales Invoice, Purchase Invoice, Payment Entry).

2. In the Currency Exchange Rate field, enter the desired exchange rate.

3. The field will be non-editable once the transaction is saved, ensuring that the rate remains fixed.

3.2 Example Scenario

• Transaction: You create a Sales Invoice for a customer in EUR.

• Exchange Rate: You set the exchange rate to 1 EUR = 90 INR.

• Freeze: The rate is locked, and any future fluctuations in the EUR/INR exchange rate will not affect this transaction.

4. Disabling the Freeze Exchange Rate Feature

If you no longer want to use frozen exchange rates, you can disable the feature:

1. Navigate to Accounting > Accounting Masters > Accounts Settings.

2. Under the Currency Exchange section, uncheck the Allow Stale Exchange Rates field.

3. Save the settings.

4. Refresh your iVendNext account.

Once disabled, the exchange rate field in transactions will become editable again, allowing you to use real-time exchange rates.

5. Best Practices for Using the Freeze Exchange Rate Feature

Here’s a quick look at some of the best practices for using the Freeze Exchange Rate Feature.

• Use Sparingly: Only freeze exchange rates for critical transactions where rate stability is essential.

• Monitor Rates: Keep an eye on currency fluctuations to determine when to freeze or unfreeze rates.

• Documentation: Maintain documentation of the frozen rates and the reasons for freezing them for audit purposes.

• Review Periodically: Periodically review frozen rates to ensure they are still relevant and accurate.

6. Example Use Case

6.1 Freezing Rates for a Long-Term Contract

• Scenario: You have a long-term contract with a supplier in USD, and you want to lock in the exchange rate to avoid fluctuations.

• Action: Enable the Freeze Exchange Rate feature and set the exchange rate to 1 USD = 75 INR for all transactions related to the contract.

• Result: The exchange rate remains fixed at 75 INR per USD, ensuring consistent pricing and financial planning.