Price recalculation when currency exchange rates change with margin retention

The Torgsoft software includes tools for working with foreign currency prices that allow you to automate the recalculation of retail prices in hryvnias when exchange rates change, while preserving the set markup percentage (margin). This is especially important for goods purchased in foreign currency.

Below is a detailed setup and workflow algorithm for recalculating prices without losing markup (margin).

1. Setting up currencies and exchange rates

For correct operation, you first need to set up currencies and their exchange rates.

• Currency directory. In the menu Settings — Currency, the required currencies (dollar, euro, etc.) must be created. The national currency in the database must be set as Hryvnia (code 980).

• Exchange rate. The current exchange rate is set in the menu Payment — Currency exchange rate. Here you specify the buy and sell rates. For sales price recalculation, the software uses the exchange rate at which the business owner buys currency to settle accounts with the supplier.

2. Posting goods in foreign currency

For the software to "know" that a product depends on the exchange rate, it must be posted correctly.

• In the goods receipt document (Document — Goods receipt), when creating the receipt document, you need to select the purchase currency (for example, Dollar ($)) and specify the rate at the time of receipt.

• You enter the purchase price in currency. The software will automatically calculate the cost in hryvnias based on the exchange rate.

• Markup. You set the desired markup percentage (for example, 50% or 100%). The software will calculate the retail price in hryvnias using the formula: (Purchase price in currency * Exchange rate) + Markup %.

3. Using the "Equivalent price" (Fixing the price in currency)

This is the key mechanism for preserving margin when the exchange rate fluctuates.

• The product card has a tab called "Price equivalent in currency".

• If you want the product price to be firmly tied to a currency (for example, a product should always cost the equivalent of $100), you set this value here.

• Selecting the "Always calculate" checkbox allows the equivalent to be recalculated automatically when parameters change, but a separate mode is used for mass price updates across the store when the exchange rate changes.

4. Mass price recalculation when the exchange rate changes

When the exchange rate rises, you do not need to change prices manually in every product card. For this purpose, there is the mode "Calculation of retail and wholesale prices by markup and exchange rate" (Warehouse — Calculation of retail and wholesale prices by markup and exchange rate).

Algorithm of actions when the exchange rate changes:

1. Update the rate in the menu Payment — Currency exchange rate to the current one (today's rate).

2. Go to the menu Warehouse — Calculation of retail and wholesale prices by markup and exchange rate.

3. Use filters to select the required products (for example, products from a specific supplier or all products with prices in foreign currency).

4. Select the Calculation method:

•    From equivalent price. The software will take the fixed price in foreign currency (for example, $100) and multiply it by the new exchange rate. This guarantees that you will receive the same amount in currency equivalent.

•    From purchase price. The software will take the purchase price in foreign currency, multiply it by the new exchange rate, and add your set markup percentage. This allows you to preserve the margin as a percentage of the current replacement cost of the product.

5. Select Exchange rate "Today only" (to apply the new current exchange rate).

6. Click the "Set retail price" button. The software will update prices in hryvnias for all selected products.

5. Additional tools for preserving margin

• Rounding. To prevent prices after recalculation from looking like "1254.37 UAH", configure rounding rules (to 1 UAH, to 5 UAH, etc.) in the product type settings or directly in the recalculation window.

• Changing markup. If you want to change the margin itself, in the same window you can use the "Change retail markup" function. You can enter a new percentage, and the software will recalculate prices based on the current exchange rate and the new markup.

• Minimum price control. To prevent sellers from accidentally selling a product at an old price or with a discount that "eats into" the margin, you can configure minimum markup control or prohibit sales below cost in the settings of the Torgsoft software user card.

Thus, by using the "Calculation of retail and wholesale prices by markup and exchange rate" mode together with linking to the equivalent price or the purchase price in foreign currency, you can instantly respond to exchange rate fluctuations by automatically increasing prices in hryvnias so that your markup (margin) remains unchanged.