To use the rate determiner

The rate determiner is used to determine whether you want to use a variable currency rate (rate determiner = Document Date or Expected Cash Date) for all invoice transactions, or a fixed currency rate (rate determiner = Fixed or Manually Entered). The currency rate can be determined in different ways to make sure that the method is in line with the way you run your business.

For the Document Date rate determiner, the currency rate is retrieved with the invoice date and the business partner exchange rate type, from the Currency Rates (tcmcs0108m000) session. For the Expected Cash Date, LN takes the Payment Days into account to calculate the invoice date to retrieve a rate from the Currency Rates (tcmcs0108m000) session. As a result, the invoice amounts can have different currency rates during the life cycle of the project.

If you want to use the same currency rate for a project, you can use the Fixed or Manually Entered rate determiner. For example, if you work with long-term contracts, you want to be sure that the currency in which your project is paid by your American business partner, is virtually inflation-proof. In case of a Fixed rate determiner, you might use currency hedging and buy dollars to counterbalance inflation risks. You invoice for a fixed business partner currency rate, which you enter in the Rate field in the Contracts (tpctm1100m000) session.

If you use the Manually Entered rate determiner, you can also enter the currency rate. This entered currency rate remains fixed for the life cycle of the project, as with Fixed. However, with Manually Entered the currency differences (currency write offs) are used in the interim result. Note that the Rate field can only be entered in these two cases and only in the Contracts (tpctm1100m000) session or the Contract Lines (tpctm1110m000) session. As a result, the invoice amounts will have the same currency rate during the project. The Currency Rates (tcmcs0108m000) session is not used.