Initiate Forward Contract
1. Initiate discussions
Where your department has a payment to make that is:
- Over £50,000 in value and in a currency other than £Sterling
- To be made 3 months - 2 years hence
Contact Treasury who will advise whether some form of currency hedge is relevant. Please remember that any rates discussed at this time are only indicative.
It may be agreed that a forward contract is not relevant, in which case the purchase will proceed as per the Purchase to Pay process.
2. Raise a purchase requisition
Where a forward contract is agreed, raise the Purchase Requisition, generate and issue the Purchase Order and receipt the goods/service as per Purchase to Pay process.
3. Forex set up
Importantly, having placed the order, the must be completed to provide the relevant details to Treasury. This form must be authorised by your Departmental Administrator.
Once they have checked that the form is correctly completed and authorised, the Treasury team will contact the bank to agree rates etc. The details and specific rate for the contract will then be confirmed back to your department.