In instances where you have configured currency for a loyalty program, you may need to convert the loyalty program’s currency to a secondary monetary currency. To do this, you must set up and maintain exchange rates between the loyalty program’s points and the secondary monetary currency.

The primary reason for creating an exchange rate is to set conversion rates between loyalty programs and the secondary currency. The exchange rate can also be used during tax calculations with Avalara AvaTax or Vertex O Series. This allows you to send order information to the tax processor in a format that the processor can use to calculate the tax. The tax value is then converted back into loyalty points and displayed in the order.

For information on configuring tax gateways, refer to the Configure Tax Processing section in Using Oracle Commerce Cloud and Configure Tax Processors in Extending Oracle Commerce Cloud.

The secondary monetary currency is configured with the secondaryCurrency property when setting up a site. This indicates the currency that the site uses, such as USD. For information on creating a base currency and assigning it to a site, refer to the Associate secondary currency to a site section.

Note: Exchange rates do not convert between different monetary currencies. For example, you should not configure an exchange rate between US dollars and Euros.

Exchange rates are set using the exchangerates endpoint to identify a source currency and target currency. Exchange rates are global and not site specific. There should be at least one exchange rate configured with the target currency identified in the secondaryCurrency property. Note that exchange rate settings are used only with sites that have loyalty points indicated in their price list group. For information on working with price list groups, refer to the Configure Price Groups section in Using Oracle Commerce Cloud.