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Landed Cost

Part of Supplier requests and quotations

Comparing quotations in different currencies

Convert supplier quotes on a common basis, check actual payment rates and fees, and show the effect of exchange-rate changes.

Desk Costs · · 2 min read

Convert foreign-currency supplier quotes to Australian dollars on one stated comparison basis, using the same priced scope. Beside each converted figure, keep the original currency amount, the rate and the fees you expect. Show the effect of a rate move before payment; a converted price stays an estimate until the conversion is booked or paid.

Align the offers before converting

Confirm each quote covers the same product version, quantities, packaging and delivery point. A USD factory price and a EUR delivered price remain different commercial offers even when both are shown in A$. To reach the same comparison point, list freight and other work needed, but do not count a charge already included in the supplier price.

Record the quote currency, expiry date, payment dates and any repricing rule. Ask whether the deposit and balance will be paid in the same currency. If a supplier offers an A$ option, check whether it fixes the full-order amount and which changes could reopen it.

State the rate convention

An exchange rate can be quoted as foreign currency per A$1 or A$ per unit of foreign currency; note the direction in the worksheet. At a fictional rate of USD 0.70 per A$1, USD 700 converts to A$1,000 by dividing 700 by 0.70. This is arithmetic, not a current exchange rate or a payment quote.

The Reserve Bank of Australia displays its published rates as units of foreign currency per Australian dollar. These are reference figures, not rates available from your payment provider; the RBA says its published data should not be relied on for commercial purposes. For a purchasing decision, ask your provider for the rate and charges that apply to the amount and timing of each expected payment.

Using RBA Exchange Rates for Purchasing Decisions

  • ProsProvides reference figures; published as units of foreign currency per A$1
  • ConsNot available from payment providers; should not be relied on for commercial purposes

Build a comparison with two views

ViewWhat it tells you
Current payment estimateEach comparable quote converted using provider rates and fees for stated amounts and dates, if available
Rate sensitivityThe A$ outlay if an unbooked payment faces a less favourable rate

For the fictional USD 700 amount, a move from USD 0.70 to USD 0.65 per A$1 changes the converted amount from A$1,000 to about A$1,076.92 before fees. This shows exposure to a rate change, not a forecast. If one offer is cheaper only under a narrow rate assumption, record that uncertainty instead of declaring a winner from the first conversion.

Preserve the decision basis

Keep the original quotations, comparison date, rate direction and source, provider fees, payment dates and any booked conversion together. Show unpriced charges as open items. After payment, replace the estimate with the actual A$ outlay, including fees, in the purchasing record.

This worksheet compares commercial quotations. Tax and customs conversions can have their own rules and dates; assess those separately.

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