Enter currency exchange rates
Currency exchange rates are constantly fluctuating. You can use the Currency Exchange Rates page to record exchange rates and view prior entries for exchange rates. This table is frequently updated, possibly daily, to reflect current exchange rates for transactions.
If you want to set up the exchange rate manually, follow these steps:
From the Currencies page, select the line for the currency for which you want to set up the exchange rate.
Select the Process action and then select the Exch. Rate action.
The Currency Exchange Rates page includes the following fields:
Starting Date - Identifies the effective date to use for the exchange rate. Enter a new line with a new starting date for each effective date.
Currency Code - Identifies the code for the selected currency.
Relational Currency Code - Identifies the currency to use. To specify a local currency, leave the field blank.
Exchange Rate Amount - Identifies the rate to use for the currency that is selected on the line. Use the Exchange Rate Amount and Relational Exch. Rate Amount fields when you are recording transactions. The entries in the fields tell the system how to calculate amounts for the selected currency.
Relational Exch. Rate Amount - Indicates the rate to use for the currency that is selected in the Relational Currency Code field. If the field is blank, it's the local currency rate. Use the Exchange Rate Amount and Relational Exch. Rate Amount fields when you are recording transactions. The entries in the fields tell the system how to calculate amounts for the selected currency.
Adjustment Exch. Rate Amount - Indicates the rate to use for the currency that is selected on the line. Use the Adjustment Exch. Rate Amount and Relational Adjmt. Exch. Rate Amount fields when you run the Adjust Exchange Rates batch job.
Relational Adjmt. Exch. Rate Amount - Indicates the rate to use for the currency that is selected in the Relational Currency Code field. If the field is blank, it is the local currency. Use the Adjustment Exch. Rate Amount and Relational Adjmt. Exch. Rate Amount fields when you run the Adjust Exchange Rates batch job.
Fix Exchange Rate Amount - Determines whether the currency or relational currency exchange rates that are suggested on invoices, journal lines, and batch jobs are fixed or editable. When a selection is made in this field, that selection is fixed (not editable). The options in this field are Currency, Relational Currency, or Both.
To enter and maintain the different exchange rates, different approaches can be used, depending on the frequency with which your company uses foreign currencies and deals with the exchange rate adjustments:
For each new exchange rate, a new line can be entered on the Currency Exchange Rates page, each with a different start date. In this case, make sure that the Relational Exch. Rate Amount and the Relational Adjmt Exch. Rate Amt. fields are equal, in addition to the Exchange Rate Amount and the Adjustment Exch. Rate Amount fields.
This approach is recommended when exchange rates are adjusted regularly. This method also ensures that documents and journals are created by using current exchange rates. Keeping history on this page enables traceability of exchange rate adjustments for a particular currency over time.
You can use different exchange rates in the Relational Exch. Rate Amount and the Relational Adjmt Exch. Rate Amt. fields. This approach gives you flexibility in the exchange rate setup. For example, you can update the Relational Exch. Rate Amount field daily, while updating the Relational Adjmt Exch. Rate Amt. field at the end of each month. Another possibility is to use exchange rates from one source for adjustments and from another source for the default transaction exchange rate. For example, you can use the exchange rates according to the local rates for the Relational Exch. Rate Amount and use a government-approved bank's exchange rates for the Relational Adjmt. Exch. Rate Amt.
Occasionally, companies that use foreign currencies might not be required to update the currency exchange rates. Therefore, the appropriate exchange rate can be when users enter the sales and purchase documents and when they are entering customer or vendor payments in the general journals. In this case, make sure that the Fix Exchange Rate Amount field doesn't contain the Both option.