To define currency rates

LN uses the currency exchange rates to convert transaction amounts into amounts in the company's home currencies. Use the Currency Rates (tcmcs0108m000) session to define currency rates.

Currency systems and currency rates

You can only define currency rates between the transaction currencies and the company's home currencies. You cannot define currency rates between two currencies that are not home currencies. The home currencies are the currency base in the Currency Rates (tcmcs0108m000) session. The currency rates that you must define depend on the currency system used. See Currency systems and currency rates for details.

Express in base currency

For each currency rate you can indicate whether:

  • The rate must be expressed in the base currency (one unit of the base currency is so many units of the external currency).
  • The rate must NOT be expressed in the base currency (one unit of the external currency is so many units of the base currency).
Note

If the base currency is the Euro, you must set Express in Base Currency to Yes. For details, see Euro compliance.

The rate factor

You can use the rate factor to avoid extremely high or low values of a currency exchange-rate. Depending on the setting of the Express in Base Currency field in the Currency Rates (tcmcs0108m000) session, LN divides or multiplies the amount by the rate factor before the currency exchange-rate is applied. See also Example of rate factor.

Exchange rate types

You can define different currency rates for the different exchange-rate types. For example, you can specify different currency exchange-rates to be applied to purchase transactions, to sales transactions, and to internal transactions. See Using currency exchange rate types for details.

The effective date

LN uses the currency rates that is valid at the specified time and date to convert an amount. For example, you can usually specify that LN must use the currency rate that is valid:

  • When you commit the transaction (the order date).
  • When the transaction is invoiced (the invoice date).
  • On a manually entered date.

A currency rate can only take effect if the Rate Approved check box in the Currency Rates (tcmcs0108m000) session is selected. The currency rate takes effect either at the date and time of the Effective Date field or the Approval Date field, whichever is the later.

LN uses the internal currency exchange rates to calculate and store the cost price in the reference currency and to convert the item cost price from the reference currency into the other home currencies. Therefore, in a dependent multicurrency system, you cannot change a currency rate of the internal exchange rate type that is already used to calculate item cost prices.

The rate determiner

For most transactions you can select a rate determiner. The various rate determiners that are available are described in Rate determiners.

Rotate Currency

In the sessions that display amounts which are registered in more than one currency, you can choose Rotate Currency from the Tools menu to see the amounts in the different home currencies.

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