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Defining Conversion Rate Types

Use conversion rate types to automatically assign a rate when you convert foreign currency journal amounts to functional currency equivalents. You enter daily conversion rates for specific combinations of foreign currency, date, and conversion rate type.

When you enter a foreign currency journal, General Ledger automatically displays the predefined exchange rate based on the currency, rate type (unless you are using the User rate type), and conversion date you enter. When you have a User rate type, you enter the rate directly when you enter a foreign currency journal.

Additional Information: If you want to enter different daily rates for the same combination of from-currency, to-currency, and conversion date, you must define separate conversion rate types.

General Ledger provides the following predefined daily conversion rate types:

Spot: An exchange rate which you enter to perform conversion based on the rate on a specific date. It applies to the immediate delivery of a currency.

Corporate: An exchange rate you define to standardize rates for your company. This rate is generally a standard market rate determined by senior financial management for use throughout the organization.

User: An exchange rate you specify when you enter a foreign currency journal entry.

EMU Fixed: An exchange rate General Ledger provides automatically when you enter journals (after the EMU effective starting date) using a foreign currency that has a fixed relationship with the Euro.

You can use these predefined rate types to enter exchange rates, or you can define additional conversion rate types. After defining a conversion rate type, enter daily rates using that rate type.

   To define a new conversion rate type:

See Also

Entering Foreign Currency Journals

Entering Daily Rates

Defining Currencies

Overview of Multi-Currency Accounting

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