Maintaining period rates

Period rates are defined using Currency Period Rates (CNP). They are defined for a currency combination; a From Currency and a To Currency where the From currency must be the pivot currency.

For example, to convert a sterling value (GBP) into US dollars you need to define a currency period rate for the GBP-USD currency combination, if GBP is the pivot.

Many different period rates can be defined for the same currency combination. They can be defined for any combination of:

  • accounting period
  • account code or an account code range.

For example, for the GBP to USD currency combination you may wish to define a different rate for each accounting period, and another set of rates defined for each accounting period that only applies to balance sheet accounts.

You can define a global rate for the currency combination by leaving the accounting period and account code range blank. This global rate is used as a default rate to apply to all periods and accounts. It is not necessary to define a rate to convert a currency to itself.

Where are Period Rates Used?

The period currency conversion rates are used in the following functions to provide the conversion rate required to convert one currency value to another:

  • Ledger Entry (LEN)
  • Ledger Import (LIM)
  • Ledger Revaluation (LER).

They can also be used in any of the following Financials reporting tools:

  • Financial Analysis (FNA)
  • Financial Statements (FSS)
  • Financial Tables (FTB).

They are used in the following functions to convert discount values, if discount is taken or allowed:

  • Payment Run (PYR)
  • Payment Collection Run (PYC)
  • Transaction Matching (TRM).

These functions search through all of the available rates for the currency combination to find the most appropriate rate for the transaction.

Period rates are not used by Ledger Entry, Ledger Import, Transaction Matching, Payment Run or Payment Collection Run, if the currency requires daily rates. A currency uses daily rates if the Use Daily Conversion Rates option is set to Yes for the currency in Currency Codes (CNC).

Even if you are using daily rates for journal input, you need to define a period rate for other functions, such as Ledger Revaluation and financial reporting.

Reporting Rates

You can also define up to five additional reporting rates, for each currency combination, for particular accounting periods and account ranges.