Creating rate precision for currency

Rate precision specifies how many decimals are displayed. Rate precision is used in calculations in currency fields that contain more than the standard number of decimals.

Rate precision can also be a factor in currency exchanges. Currency exchange rates are generally expressed with up to six decimals. Therefore, conversion results are likely to contain more than the number of decimals that a currency uses. The system therefore often rounds up the conversion amount.

Rate precision is created at the enterprise group level.

The rate precision for a currency can contain more decimals than the currency's number of decimals, for a greater precision of converted amounts.

For example, assume the current rate of exchange between the euro and the US dollar is:

€ 1 = $1.346439

Both currencies use two decimals. This table shows how different rate precisions affect the conversion results for 10 euros.


Number of decimals (rate precision)	Conversion result in US dollars
2	13.46
3	13.464
4	13.4644
5	13.46439

Select Administrator > Set Up > Prerequisites > Rate Precision.
Click Create.
Specify this information:

Enterprise Group

Select the enterprise group for which you are creating the rate precision.

Rate precision effective date

Select the date on which the precision rate is effective.

Currency

Select the currency for which you are creating the rate precision.

Number Of Decimals

Select the number of decimals that are reported in currency conversions where the currency is the target currency. The default is zero. Do not specify zero because it cuts off all decimals.
Click Save.