Re: Vendor Exchange Rates (Susan Davis) Marcia Tuttle 22 Oct 1993 10:56 UTC

---------- Forwarded message ----------
Date: Fri, 22 Oct 1993 12:27:25 EDT
From: Susan Davis <>
Subject: Re: Vendor Exchange Rates (Mary Ellen Kenreich)

Its no wonder Hannah and Mary Ellen are confused.  The world of vendor
exchange rates is ever changing, just as our serials are.

It was my understanding that there were several options/possibilities
for foreign exchange rates.  In one scenario, the vendor negotiates
a particular, fixed exchange that will be used for all orders from that
vendor to that publisher.  In another case, the vendor may decide to
go with a floating exchange, and decide to pay at the rate of exchange
when either the order is placed or when payment is made (although it is
my understanding that in most cases payment accompanies the order, so it
would be the same date).

You, the library, may try to negotiate your own arrangement with your
vendors or publishers, along the same lines as described above.

With drop shipped material, or in cases where the library has requested
to be billed in US$, the vendor will usually calculate the exchange on
the date the invoice is issued.

To further complicate matters, some publishers would accept either of
the two scenarios I have described, that is, the library pays at the
suggested US$ price, or makes a fair exchange at the time they make
payment.  Now, I understand one of the biggies is setting a US$ price
which all US customers must pay.  We are not allowed to make a currency
conversion at the time we make payment.

My suggestion to all of you is to ask your vendors what sort of practice
they follow, and find out from your own financial folks how invoices in
foreign currency are handled.


Susan Davis                           BITNET: UNLSDB@UBVM
Head, Periodicals                   INTERNET: UNLSDB@UBVM.CC.BUFFALO.EDU
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