Reverse Auction- Multi-currency functionality

4 months ago
diana
2 minutes

Procuring goods and services across different currencies requires a tool to manage exchange rates, ensure consistency, and facilitate transparent transactions. Prokuria’s multi-currency functionality offers a comprehensive solution, empowering users to navigate currency fluctuations and streamline procurement processes with ease.

Using Multi-currency in Prokuria (Example Scenario):

  1. The Buyer creates an item-level auction by filling in all necessary details, including sections such as “General info,” “Settings,” “Suppliers”, Base currency: EUR
  2. Items sections, one item: Starting price/um: 100 Eur and Minim step/um: 5 Eur
  3. Next, within the “Settings” section, the Buyer activates the “Allow multi-currency” option.

Once the option is activated, two new tables will appear below: “Exchange Rates” and “Supplier Details.” Ensure that you have already added the suppliers you wish to invite to the auction before activating the “Allow Multi-Currency” option, as this will allow the system to automatically populate the “Supplier Details” table.
Firstly, on the “Supplier Details” section, the Buyer chooses the currency for each supplier.
Next, in the “Exchange Rates” section, based on the Base currency (the currency selected for the auction), the Buyer can enter the exchange rate for the other currencies.

For example, let’s consider 3 suppliers, each using a different currency. Base currency: Eur

  • Supplier ABC => Currency: RON, Exchange Rate: 5;
  • Supplier Orange => Currency: EUR, the Base currency is EUR so there is no need for an exchange rate;
  • Supplier Red Demo =>Currency: USD, Exchange Rate: 1.1;

The Buyer publishes the auction, and suppliers can begin submitting bids.

Response page (supplier page)

On the response page, the following information will be adjusted based on each supplier’s currency.

For Supplier ABC, with currency RON, the following data will be displayed in Ron:

  • Starting price/um: 500.00 Ron
  • Minimum step/um: 5.00 Ron
  • The bid this supplier will submit will be in Ron

Supplier Red, with currency USD, the following data will be displayed in USD:

  • Starting price/um: 550.00
  • Minimum step/um: 5.5

Supplier Orange: in this case, no impact on the starting price/um & Minimum step/um

On the “Compare Responses” page, the Buyer will see all prices displayed in Euros (the base currency). This is because the prices offered by suppliers have been converted using the exchange rate established during the auction setup.

Are you stuck somewhere? Don’t worry, we’re here for you. Drop us an mail at support@prokuria.com and we’ll get back to you.