18 — (Optional) Hedge Your Currency Risk

When you sell in a foreign currency, the rupee value of that order moves every day with the exchange rate — that's your currency exposure. Booking a forward contract with your bank locks in a rate today for money you'll receive later. This section is optional: skip it if you don't hedge, or if your bank relationship doesn't use forwards. If you do hedge, this is how you record the booking and link it to the export order it protects.

Before you start

You need a submitted Sales Order to hedge against — see Price It, Quote It, Win It. A forward is booked against an order's exposure, so the order must already carry an amount and a currency.
Your bank must exist as a record in the system (a standard Bank master) so you can pick it on the booking.

The whole journey of this section:

flowchart LR
    so["Submitted Sales Order<br/>(foreign-currency exposure)"] --> book["Book a Forward<br/>Underlying: link the Sales Order,<br/>Amount Covered"]
    book --> reflect["Sales Order Exim tab:<br/>Amount Hedged rises,<br/>Amount Unhedged falls"]
    reflect --> pay["Buyer pays →<br/>Payment Entry against the invoice"]
    pay --> consume["Forward Booking Utilization<br/>consumes the covered amount"]

Steps

1. Open a new Forward Booking

Go to the Forward Booking list — search for "Forward Booking" in the top search bar.
Click Add Forward Booking / New.

How you know it worked: a new Forward Booking form opens with Hedge, Currency, Booking Date, Bank, Margin, Status and Company pre-filled with defaults you can accept or change. Only Booking Ref, Amount USD Book, Current Rate, Premium, Maturity From and Maturity To are genuinely blank and need filling in.

2. Fill in the booking your bank confirmed

Enter the deal exactly as your bank confirmed it:

Booking Ref — the reference number your bank gave you for this forward (a free-text label, not auto-generated).
Hedge — Export for money you're going to receive (this is the case for nearly every deal in this guide) or Import for money you owe.
Currency and Amount USD Book (or whichever currency your exposure is in) — the amount your bank agreed to convert.
Current Rate, Margin, Premium — the pricing your bank quoted. Booking Rate is not something you enter — it's calculated automatically as Current Rate + Premium − Margin, and is the rate that will actually apply when the contract matures.
Booking Date, Bank, Maturity From, Maturity To — when the deal was struck, which bank it's with, and the window in which you must deliver the currency.
Company — the company this hedge sits under.

Click Save.

How you know it worked: Amount Outstanding and Outstanding INR fill in on save — the rupee value of what's still uncovered by a matching export.

3. Link it to the Sales Order it covers — the Underlying table

Scroll to the Underlying section. This is where you tell the system which export order this forward is protecting:

Add a row in the Forward Booking Underlying table.
Set Link to = Sales Order, then Document = the order (e.g. SAL-ORD-2026-00003).
Enter Amount Covered — how much of the booking you're applying to this order. You can split one forward across several orders, or cover one order with several forwards, by adding more rows.
Click Save, then Submit the Forward Booking.

How you know it worked: Total Underlying at the bottom of the table matches the sum of your Amount Covered entries, and the document status reads Submitted.

Submitted Forward Booking FWD0002: Hedge Export, Currency USD, Amount USD Book $50,000.00, Booking Rate 84.97, Bank Emirates NBD, Maturity From 12-07-2026, Maturity To 10-09-2026, Amount Outstanding $50,000.00, Outstanding INR ₹42,48,500.00

PSR Limit section (Days for Limit Blocked, Margin %, Forward Limit INR, Forward Limit USD) and the Underlying table below it, showing one row linking to Sales Order SAL-ORD-2026-00003 with Order Amount $0.00 and Amount Covered $50,000.00

The PSR Limit block above the Underlying table is informational — it shows the exposure limit your bank has set for you, so you know how much more you can hedge without breaching it.

4. Watch the Sales Order pick up the hedge

Go back to the Sales Order, open the Exim tab, and look at the Shipping Details section again.

How you know it worked: Amount Hedged (in the order's currency) now shows the amount you just covered, and Amount Unhedged has dropped by the same figure — the system computed this the moment you submitted the Forward Booking, with no action needed on the order itself.

Sales Order Exim tab Shipping Details: Amount Hedged ₹0.00, Amount Hedged (XOF) CFA 50,000.00, Natural Hedge (XOF) 0.00, Amount Unhedged (XOF) CFA 8,20,30,000.00

Do not edit Amount Hedged, Natural Hedge or Amount Unhedged by hand — they're read-only for a reason: they always have to agree with the Forward Bookings actually linked to this order.

If you booked several forwards against the same order, Amount Hedged is their combined total; Amount Unhedged is simply the order value minus that total, so it can never go negative on its own.

5. Let payments consume the hedge

You don't need to do anything extra here — it happens as a side effect of the normal flow. Raise the Export Invoice opens a BRC record that tracks the buyer's payment; when that buyer's Payment Entry is recorded against the invoice for this order, it draws down the Forward Booking's Utilization — the portion of the booking that has actually been used to settle a real payment, as opposed to just being earmarked against an order.

How you know it worked: on the Forward Booking, Total Utilization rises and Amount Outstanding falls as matching payments come in — until, once the full booked amount has been paid against, the forward is fully utilised.

Where this goes next

Hedging runs alongside the main chain rather than feeding into another step — the export itself carries on through Run the Shipment and Raise the Export Invoice, whose BRC record then tracks the buyer's payment against this same order, with the Forward Booking quietly keeping score of how much of the deal's currency risk is covered.

Setup Guide