About the Euro Triangulation Conversion
Therefore, to convert a monetary amount from one national currency to another, the system currency conversion process performs these tasks:
- Converts the amount from the national currency to the euro.
- Converts the resulting amount, which is expressed in euros, to the other national currency.
For example, to convert Deutsche marks to francs:
The same principle applies if your domestic currency is not part-of-euro, but you need to do business with a vendor or customer situated in a participating country who will be using the euro, but has not yet switched to it. The system conversion process
- Converts the amount from your domestic currency to the euro.
- Converts the resulting amounts, which are expressed in the euro currency, to the national currency of the vendor or customer.
For example, to convert US dollars to francs:
The exchange rate between each participating national currency and the euro is fixed. If the currency is part-of-euro, this fixed exchange rate to the euro is stored in the system (on the Currency Codes form). There is only one exchange rate to the euro (1 euro =) for each part-of-euro currency there is no buy and sell rate.
- This conversion process applies only if one or both of the currencies involved is a part-of-euro currency and neither currency is the euro. If one of the currencies is the euro, the system performs the conversion normally. Also, if one of the currencies involved in a transaction is part-of-euro, and the other currency uses the Rate is Divisor option, the triangulation is calculated differently.
- The system does not round any numbers during this conversion process. After the conversion is complete, the system rounds the final value to match the display format of the end currency. Conversion rates are always expressed as 1 euro to the other currency.
- The use of francs and Deutsche marks above is only for illustration purposes; in reality, both currencies have already been converted to the euro.