Exchange Rates

Access this form using Maintain>Multicurrency>Exchange Rates.

Use this form to select an existing rate type and currency, to enter activation and expiration dates, and to enter a currency exchange rate and its source.

At the bottom of the form, the system displays the equivalent value of one unit of the selected Currency and value of one unit of the organization's functional currency. For example, 1 EUR is equal to 1.19 USD; 1 USD is equal to 0.84 EUR.

Note: You must have previously created custom Rate Types using Maintain>Multicurrency>Exchange Rate Types and set up and activated Currency codes using the Organization>Currency Setup form.

 

Rate Type: Select an existing exchange rate type from the drop-down list. The system lists any custom types you created, along with two predefined rate types—DSR and MAR.

• DSR (Daily Spot Rate) - The daily value of the currency. This is used on a daily basis.
• MAR (Monthly Average Rate) - The average monthly value of the currency. This is used to revalue over a period of time.

Currency: Select a currency code from the drop-down list, such as USD, CAD, EUR, GBP, or MXN.

Active Date: Enter the date the exchange rate value is active.

Exchange Rate: Enter the exchange rate of the Currency (source) selected, not the functional currency.

For example, let's say you want to convert EUROs into US Dollars and the organization's functional currency is set to USD. Essentially, you are converting 1 EUR to the equivalent amount in USD. You would select EUR as the Currency. Then, using your source, find the EUR exchange rate, such as 1.19480 and enter it here. This is the EUR>USD side of the conversion.

Converting		EURO	EUR Exchange Rate	Calculation Summary
EUR>	USD	€1	1.19480	€1 = $1.19

Exchange Rate Restated: The reciprocal of the exchange rate (1/exchange rate). The system displays the reciprocal rate to show the alternate way to state the exchange rate.

The system automatically converts and displays the functional currency's new amount in this field. That is the USD>EUR side of the conversion, which in this example, would be 0.83696. It is the selected Currency inverted to the functional currency's exchange rate, USD in this example.

Converting		USD	USD Exchange Rate	Calculation Summary
USD>	EUR	$1	0.83696	$1 - 0.84 EUR

Expiration Date: Enter the date on which the exchange rate value expires. Rates are set to expire at 12 a.m. of the date entered. Note that if your valid date range is currently June 1 to June 30, we recommend entering July 1 as the expiration date. That way, you will be able to use the exchange rate until 11:59 p.m. on June 30.

If the Exchange rate expires check box was selected by the Administrator on the Organization>Set Up Modules>Multicurrency form, this field is required. The default date displayed here is determined by what was previously entered in the Exchange Rate Expires box. If the Effective Date entered during transaction entry, is a date after the Expiration Date, the system displays a warning message. However, you can continue to enter transactions with a rate that has expired.

Source: Enter the place where you obtained the exchange rate. This is for reference only.