Defining exchange rates for currencies

Define the exchange rate for a currency by entering a base currency and exchange rate for the currency.

Note: Define the base currency in the DEFCURR parameter of the Install Parameters form.

The system uses exchange rates to convert foreign currency amounts to base currency using the following equation:

base currency amount=foreign currency amount/exchange rate

Example:

Your base currency is USD. You have created a purchase order for 50 filters at 9 EUR. The price of the air filters must now be converted to USD. Assuming that the exchange rate is 1.2 EURO-USD, the system calculates the following conversion:

50 air filters @ 9 EUR = 450 EUR;

450 EUR/1.2 = 375 USD

To define exchange rate for currencies:

  1. Open the Currencies form.
  2. Select the currency with which to associate an exchange rate, and then click the Exchange Rates tab.
  3. Click Add Exchange Rate.
  4. Base Currency—Enter the base currency against which to calculate the selected foreign currency. The system automatically displays the currency associated with the organization of the current session. The system displays only those currencies associated with organizations to which you have access.
    Note: You can only define exchange rates for multiple currencies if the MULTIORG installation parameter is set to YES.
  5. Exchange Rate—Enter the exchange rate for the currency.
  6. Start Date—Enter the date for which the exchange rate is effective. The system automatically displays the current date.
  7. End Date—Enter the date for which the exchange rate is no longer effective.
  8. Click Submit.
    Note:  Because exchange rates change frequently, update currency information often.