Pay at Current Rates - Calculation Rules

In a multi-currency environment, the Pay at Current Rates option in Payment Profiles (PYP) and Ledger Setup (LES) determines the basis for which exchange rates are derived for payments and collections. Even if you are only paying transactions in your base currency, for example, the reporting currency amount must still be calculated.

If you set the Pay at Current Rates option to Yes for a payment profile, the different currency values are calculated using the current exchange rates during payments and collections.

If the current rates used for payments or collections are different from the historic rates posted on the source transactions, then balancing and rounding transactions may be generated in order to allocate the payment or collection journal to the source transactions in the necessary currency values.

The following steps describe the currency calculation rules for the payment transactions, and for the currency difference transactions:

• Generating the Payment Transactions
• Generating the Currency Difference Transactions