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Exchange Rates

How to control the Exchange Rates that are used on Transaction Documents, and an overview as to when an exchange rate will be updated on a document.

If your Own Organisation trades in more than one currency, you can create Transaction Documents in any foreign currencies you use and can control the Exchange Rate that’s applied to those transactions. The Exchange Rate is used to convert the foreign currencies into your Home Currency, enabling you to create reports in your Home Currency.

NOTE:  In order to create and use multiple currencies you must have the Multi-Currency Extension for all Users, and the Multiple Currencies Module must be enabled.

Exchange Rates can be changed at any time; you may update them daily, weekly or monthly or on an ad hoc basis.

Exchange Rates are applied by looking at the document date and using the Exchange Rate that you’ve set for the corresponding time period. For example, if you’ve set Exchange Rate ‘A’ for 1-15 December and Exchange Rate ‘B’ for 16-31 December, a Transaction Document dated 10 December will use Exchange Rate A, whereas a Transaction Document dated 16 December will use Exchange Rate B.  

Tip

Workbooks can set the market rate exchange rate for you, if you wish, but you must specify the date range for which you want it to apply.

Exchange Rates and Transaction Documents in a Draft state are linked, therefore Home Currency values will change to reflect any rate changes. Thus, in the example quoted above, if the date on the second Transaction Document is changed (whilst the document is still in a Draft state) from 16 December to 10 December, the Exchange Rate will change from rate B to rate A.

When a Transaction Document is changed from a Draft state to Posted, the Exchange Rate in place at the time (based on the document date) will be applied. This Exchange Rate will not change unless a user with the necessary capability to edit a posted transaction changes the document date.

NOTE: Opportunity records do not have the concept of Draft and Posted states. They will use the Exchange Rate related to the Close Date at the time the Close Date is selected.

If the Close Date is changed to a date where a different Exchange Rate applies, the Exchange Rate for the new period will be applied. However, if the Close Date is not changed but the Exchange Rate for the relevant period is changed, the Exchange Rate will remain as per the one in place when the original Close Date was set.

Where Line Items are added to Transaction Documents whose price in the product book is in a third currency (ie, neither the Home nor the Document currency), Workbooks will display these in the Transaction Document in the Document currency, based on the exchange rates prevailing at the time.  These figures will not be re-calculated, even when the document is Posted.  This should be taken into consideration before Posting (completing) the document.

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