Defining currency exchange rates (AR/CU)

Exchange rates are used to convert an amount from one currency to another currency. You must define an exchange rate for each currency relationship for which you perform currency exchange. If you define a rate in a currency table that has the Auto Generate property set to On, then the exchange rate is automatically applied to the reverse relationship. You must define an exchange rate for a currency relationship before you enter a transaction that uses the currency relationship.

Before you can define exchange rates for a currency relationship, you must define the currency relationship on Currency Relationship (CU02.1) with Active selected in the Exchange Status field.

Follow these steps to define currency exchange rates:

Access Exchange Rates (CU10.1).
Define the exchange rates. Consider these points:
Note: You cannot enter rates for currency relationships defined as Triangulated on Currency Relationship (CU02.1).
- You must first use a blank system code to define exchange rates for a currency relationship. This becomes the default exchange rate between the currency codes. You can define different rates for a specific system code.
- The rates you specify on this form apply to a specific currency table and a specific relationship. A rate is also created for the opposite relationship, if the opposite relationship exists and if the multiplier is the reverse of the multiplier used with the rate you specify. You can specify up to one rate per day for each system.
- When converting a transaction, the application involved in the transaction uses the exchange rate whose effective date is closest to (but not later than) the transaction date to convert the transaction amount.
  
  For example, given the exchange rates displayed in the previous figure, an invoice entered in Euros on May 20 would be converted using the exchange rate for May 15, which is in effect from May 15 through May 29.
- You can update exchange rates at any time, by adding exchange rates to the already defined ones or by interfacing a non-Lawson list of exchange rates.