Defining currency relationships for triangulation

When you set up a currency relationship between two triangulated currencies, you must set up three relationships.

For example, to convert from GBP (the source currency) to CAD (the target currency), via USD (the intermediate currency) you must set up these relationships:

  • From GBP to CAD with no exchange rate or translation rate with the Triangulate option set to Yes.

  • From GBP to the USD with a set exchange rate and a set translation rate, if applicable.

  • From USD to CAD with a set exchange rate and a set translation rate, if applicable.

See Override protection.

Follow these steps to define a triangulated currency relationship:

  1. Access Currency Relationship (CU02.1).
  2. Define a relationship for converting from the source currency (for example, GBP) to the target currency (for example, CAD).

    Use these guidelines to specify the field values:

    From Currency

    Select the source currency (for example, GBP).

    To Currency

    Select the target currency (for example, CAD).

    Multiply or Divide

    No calculation is done for this currency, since the only exchange rate that needs to be calculated is between the from currency and the intermediate currency, and between the to currency and the intermediate currency.

    Triangulate

    Select Yes.

    Via

    Select the currency code you defined for the intermediate currency (for example, USD).

    Override Protection

    Select Yes or No. No will allow you to override translation rates defined in the currency table with translation rates defined at the company level.

    Override Tolerance

    You can indicate by what percentage, if any, you can override the currency exchange rate. If you leave the field blank, then the default setting is 0 and no tolerance editing takes place. This field is ignored if Override Protection is set to Yes.

    Exchange Status

    You can indicate whether this relationship can be used to perform currency exchanges. The default setting is A (Active). If you select I (Inactive), then you cannot use this relationship to perform currency exchanges.

    Translation Status

    This field determines if currency translation activity can take place for the relationship. The default is A (Active). If you select I (Inactive), then this relationship cannot be used to translate currencies.

  3. Define a relationship for converting from the source currency to the intermediate currency (for example, GBP to USD).

    Use these guidelines to specify the field values:

    From Currency

    Select the source currency (for example, GBP).

    To Currency

    Select the intermediate currency (for example, USD).

    Multiply or Divide

    Select Multiply or Divide from the source currency to calculate the destination currency.

    Triangulate

    Select No.

    Override Protection

    Select Yes or No. No will allow you to override translation rates defined in the currency table with translation rates defined at the company level.

    Override Tolerance

    You can indicate by what percentage, if any, you can override the currency exchange rate. If you leave the field blank, then the default setting is 0 and no tolerance editing takes place. This field is ignored if Override Protection is set to Yes.

    Exchange Status

    You can indicate whether this relationship can be used to perform currency exchanges. The default setting is A (Active). If you select I (Inactive), then you cannot use this relationship to perform currency exchanges.

    Translation Status

    This field determines if currency translation activity can take place for the relationship. The default setting is A (Active). If you select I (Inactive), then this relationship cannot be used to translate currencies.

  4. Define a relationship for converting from the intermediate currency to the target currency (for example, USD to CAD).
    From Currency

    Select the intermediate currency (for example, USD).

    To Currency

    Select the target currency (for example, CAD).

    Multiply or Divide

    Select Multiply.

    Triangulate

    Select No.

    Override Protection

    Select Yes or No. No will allow you to override translation rates defined in the currency table with translation rates defined at the company level.

    Override Tolerance

    You can indicate by what percentage, if any, you can override the currency exchange rate. If you leave the field blank, then the default setting is 0 and no tolerance editing takes place. This field is ignored if Override Protection is set to Yes.

    Exchange Status

    You can indicate whether this relationship can be used to perform currency exchanges. The default setting is A (Active). If you select I (Inactive), then you cannot use this relationship to perform currency exchanges.

    Translation Status

    This field determines if currency translation activity can take place for the relationship. The default setting is A (Active). If you select I (Inactive), then this relationship cannot be used to translate currencies.

Related reports and inquiries

To Use
List currency relationships Currency Relationship Listing (CU202)