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QuoteWerks Knowledgebase Topic (Article ID 6491)

Products - Based on Foreign Currency Explained

This information applies to :

Article ID
6491

Created/Updated
July 17, 2019

Category
Products


Are you using the most current release of QuoteWerks?
Version 5.5 Build 1
Question
How do the price calculations work when basing my products on a foreign currency?

Answer
In the following example, we will be using an Item Pricing Method of "Markup from Cost" [E]. The Foreign Currency will be "EUR" with an exchange rate of "0.907" [B].



In QuoteWerks, you can define the number of Unit and Extended decimal places. This is defined on the Misc tab of the Tools->Options menu.

When the local/base currency, prices are calculated, they are rounded to the specified number of unit decimal places. From there, the markup calculations are performed on those values.

If you select to "Base pricing on foreign currency", the local Cost [C] will be calculated by multiplying the Foreign Cost [A] by the Foreign Currency [B]. The result is rounded to the number of unit decimal places defined in QuoteWerks and used as the local/base Cost [C].

In this example, Markup from Cost is selected as the Pricing Method. The Percent selected is 65 [E]. To calculate the Local Price, you would multiply the Cost [C] by 1.65. To Calculate the Foreign Price [D], you would multiply the Foreign Cost [A] by 1.65 (based on the Markup [E] specified).

The Foreign List is fixed meaning that it is not based off a calculation. The Local List Price is calculated by multiplying the Foreign List by the Foreign Currency [B].

Note: If you experience numbers that do not reflect what you are expecting, this may be due to rounding. After each step or multiplication, the numbers are rounded to the number of unit decimal places defined in QuoteWerks on the Misc tab of the Tools->Options menu.

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