What is the pivot currency?

A pivot currency must be set for all business units, even in a single currency environment.

In a multi-currency environment, one of the following currency values available on each transaction must be nominated as the pivot currency for the business unit:

  • the base currency (Value 1)
  • the transaction currency (Value 2)
  • the second base currency (Value 3).

If both base and second base currencies are defined for a business unit, one of these must be chosen as the pivot. If only a base and transaction currency is defined, one of these must be the pivot.

The chosen pivot currency is the currency via which the other two of these three currency values are calculated. For example, if the transaction currency is chosen as the pivot currency, if the base currency and second base currency values need to be calculated for a transaction the rate used will be that from the transaction currency to the required currency. This ensures that arbitrage differences cannot occur.

The pivot currency is identified as part of the business unit definition in Business Unit Setup.

Uwaga:  The period and daily currency conversion rates must be defined from the pivot currency to another currency.

The following currencies cannot be used as the pivot:

  • Value 3 if it has been set as the reporting currency for the business unit
  • Value 4 - the fourth currency.