Re: Store currency and volume in database
Tom Phillips
I have done similar databases before. You should store the values as the most common currency used, probably US dollars in your case, and convert it to the others as needed. You will also need to store the current exchange rate AT THE TIME OF THE INVOICE, so you can multiply the USD * exchange rate to get your invoiced Euro.
However, I would suggest you never bill in non-US dollars. You are cheating yourself and may be costing your company lots of money because the exchange rate changes hour by hour or at least day by day, depending on the bank.
Take for example, you bill someone on 8/1/2007 73744.4 Euro = $100,000 USD * 0.737444, and they pay you today 73744.4 EURO = $99813.05 USD * 0.738825. In addition you have conversion fees, etc which I will ignore for this example. You just cost your company $186.95 USD. That may not be significant to you. But multiply that times 1000 invoices per month for 12 months, your invoicing software just cost your company $2,243,400 USD. In addition, you need to account for that difference. You sold $100,000 but only got $99,813.05 deposited in the bank.
Moral of the story, always use USD and let the bank and your customer deal with the exchange rate. Yes, I know your customers will complain, but that is the only way to make sure you get what you are owed. You have no control over the exchange rate.