Currency conversion rates
For each currency or conversion code, you can maintain an unlimited number of currency or conversion rates. A rate is always defined for a combination of From and To currency codes. The From currency is usually the pivot currency.
For example, you might define the following rates where the pivot currency is GBP:
| From Currency | To Currency | Rate |
| GBP | EUR | 1.63 |
| GBP | JPY | 189.22 |
| GBP | USD | 1.44 |
Note: The base currency, transaction currency
and second base/reporting value currency are always calculated via the pivot currency.
However, the fourth and fifth currency values can be calculated from any of the other
currency values available on a transaction, as defined in the business unit setup. So, if
these currencies are being used and are not being calculated from the pivot currency,
additional rates will need to be defined From the chosen conversion currency to the valid
Fourth and Fifth currencies.
The rates can apply to different time periods (accounting periods or dates), and to selected account ranges. For example, you might define a rate for every accounting period in the year. In addition, you might create different rates for selected balance sheet accounts, for particular periods.
You can maintain two types of currency rate that apply over different periods of time:
- Period rates - which apply to an accounting period.
- Daily rates - which apply to specific calendar dates.