Foreign Currency Transactions
When you enter a batch or receipt that is not in your functional currency, Receivables displays a pop-up window to let you enter exchange rate information. Receivables uses this information to convert your foreign currency receipts and transactions to your functional currency.
Suggestion: You can also define daily conversion rates. Daily conversion rates let Receivables automatically calculate exchange rate information when you enter foreign currency receipts and transactions. See: Entering Daily Rates.
If the profile option Journals: Display Inverse Rate is No, Receivables calculates the Functional amount as:
Functional Currency = Foreign Currency * Rate
Otherwise it is calculated as:
Functional Currency = Foreign Currency / Rate
Rate Date: The date that applies to the exchange rate for your foreign currency. The default is either the batch date (if this receipt is part of a batch) or the receipt date.
Rate Type: Receivables provides the following conversion rate types:
- Corporate: You define this rate to standardize rates for your company. This is generally a standard market rate determined by senior financial management for use throughout the organization.
- Spot: Choose this rate to perform conversion based on the rate on a specific date. It applies to the immediate delivery of a currency.
- User: Choose this rate when you enter a foreign currency for a receipt and you have not defined a daily exchange rate for the foreign currency. If you choose this rate type, you must enter the exchange rate to use. Receivables does not validate rates with a type of User.
If you select a Rate Type of 'Spot' or 'User', Receivables verifies that a rate exists for the date you enter and you cannot update the exchange rate.
Rate: The exchange rate for this receipt. If you entered a Rate Type of User, enter an exchange rate. You can have multiple currency exchange rates for the same date. Otherwise, the rate type you entered provides the default rate. You define your non-user exchange rates in the Daily Rates window. If you entered a Rate Type other than User, Receivables verifies that a rate exists for the Rate Date you entered.
Adjusting an Exchange Rate
You can change the rate type, rate date, and exchange rate of a foreign currency receipt, even if it has been transferred to your general ledger.
Prerequisites
To adjust the exchange rate information for a receipt:
1. Navigate to the Receipts or the Receipts Summary window.
3. Select the receipt, then choose Adjust Exchange Rate from the Special menu.
4. Enter the GL Date and New Rate Date for this exchange rate adjustment (optional). The default for the New Rate Date and GL Date is the current date, but you can enter a new date. If the current date is not in an open period, the default GL Date is the last date of the most recent open period.
6. If you entered a Rate Type of 'User', enter the New Rate to convert your foreign currency amounts to your functional currency. Otherwise, Receivables determines the rate from the Rate Type and Rate Date.
7. Choose Adjust. Receivables saves this adjustment and updates the amount of this receipt in your functional currency.
8. To view the functional currency gain or loss resulting from the currency exchange rate adjustment, choose Receipt History from the Special menu, then open the Rate Adjustment History alternative region.
Viewing Exchange Rate Information for a Receipt
You can view receipt exchange rate information from either the Receipts or Receipts Summary window.
To view the exchange rate information for a receipt:
1. Navigate to the Receipts or the Receipts Summary window.
3. If you are in the Receipts window, choose Exchange Rate from the Special menu.
If you are in the Receipts Summary window, select the receipt, then choose Exchange Rate from the Special menu.
See Also
Entering Receipts
Foreign Currency Transactions
Enter foreign currency receipts