Maintaining currency rate types
Create currency rate types in Currency Rate Types (CRT). You can define different period and daily rates using the same currency conversion pairs within the same period for different purposes.
You can use currency rate types where separate sets of exchange rates for various financial and reporting purposes are required.
You can use currency rate types for:
- Ledger Entry
- Ledger Import
- Ledger Revaluation
- Payment Run
- Payment Collection Run
Only the default currency rate type is used in:
- Account Allocation
- Ledger Conversion
- Transaction Matching
- Upgrade 4th Currency
- Order Fulfilment
Currency rate types are linked to currency period rate and currency daily rate records. Currency rate types do not need to differentiate between currency period rates and currency daily rates. You can define the currency rate types and when they are to be used. You can setup a currency rate type for a specific journal type, payment profile, or ledger revaluation profile.
Using Currency Rate Types Example
If you have these currency period rates defined:
| Accounting Period | Account Code | From Currency | To Currency | Currency Rate Type | Multiply or Divide | Rate Value |
| 09/2015 | 54100 | USD | GBP | Period End | * | 1.55 |
| 09/2015 | 54100 | USD | GBP | Forward Rate | * | 1.56 |
| 09/2015 | 54100 | USD | GBP | Default | * | 1.54 |
When entering or importing a multicurrency journal, if the currency rate type defined on the journal type is 'Forward Rate' the conversion rate used for account code 54100 in accounting period 09/2015 is 1.56 when calculating the currency conversion from USD to GBP.
In Ledger Revaluation (LER) if the currency rate type defined on ledger revaluation profile is 'Period End' the conversion rate used is 1.55 for the same matching conversion pair.
In this example you can see that the same currency conversion codes, account codes, accounting periods are used but different rates are calculated for Ledger Entry or Ledger Import and Ledger Revaluation.