Part of Euro

Note: This field appears only if the Euro Currency field on the Multi-Currency Parameters form contains a currency code and Euro is not set as the Domestic Currency.

Select this field if the country of this currency is a participant in the Euro currency system.

During a Euro interim period, the system uses the exchange rate in the 1 Euro = field to perform Triangulation conversions between currencies selected as Part of Euro.

If you set your base domestic currency to Part of Euro, the system automatically converts the exchange rates on all foreign currency records to handle the Triangulation conversion method. For each foreign currency record, the system multiplies the old Buying Exchange Rate and Selling Exchange Rate by the 1 Euro = exchange rate for the domestic currency. The products of these calculations are the new exchange rates for each foreign currency.

For example, the domestic currency is NLG (Dutch Guilders). The 1 Euro = rate is 0.5. The foreign currency is USD (US Dollars). The current Buying Exchange Rate for USD is 2.25 and the current Selling Exchange Rate is 2.00. To arrive at the new exchange rates, the system performs these calculations:

2.25 * 0.5 = new Buying Exchange Rate is 1.125

2.00 * 0.5 = new Selling Exchange Rate is 1.00