Currency relationships

Currency relationships are used to identify the conversion rules between two currency codes for daily, period, or both. For each currency relationship, you can define the associated rates for currency revaluation and, if applicable, for currency translation.

Currency relationship considerations

  • A currency relationship is associated with a finance enterprise group. Multiple solutions can share the finance enterprise group and each solution can have currency relationships defined. Currency daily rates are defined for a specific currency table that is assigned to your finance enterprise group. Therefore, all of the accounting entities that are associated with the finance enterprise group will draw their daily rates from the same table. Other solutions that are interfaced to the same finance enterprise group share the same currency table and rates.
  • Period rates use the same relationships but are applicable only to the accounting entities that are defined for the finance enterprise group.
  • A currency relationship is uni-directional. If you define a relationship from the Canadian dollar to the US dollar, you can convert from the Canadian dollar to the US dollar. You can not convert from the US dollar to the Canadian dollar. When you create a relationship, you have the option to automatically generate the reverse relationship.
  • You must define a currency relationship between each currency code that you convert amounts from and to.
    • From each accounting entity's functional currency to its alternate currencies, if translating from functional to alternate currency.
    • From each accounting entity's functional currency to each enterprise and project currency that is defined for the finance enterprise group, if translating.
    • From each transaction currency to the applicable accounting entity's functional, alternate, project, and enterprise currencies that are defined for the finance enterprise group.
    • You can add currency relationships and currency rates at any time before you create a transaction that will use the relationship.