Understanding Currency Cross-Rate Calculations

After you create currency cross-rate relationships and review them, you calculate new exchange rates based on the common currency. The Calculate Cross Currency Rates program (R11153) calculates the new exchange rates based on the cross-rate relationships in the Currency Cross Rates Calculation Master table (F11151) and the exchange rates in the F0015 table.

If a currency relationship uses the no inverse method, the program calculates cross rates regardless of whether a triangulation currency is set up for the currency relationship.

You can run the Calculate Cross Currency Rates program in proof or final mode, as described in this table:

Mode	Description
Proof	The system prints a report that lists all currency relationships and the exchange rates that are calculated in final mode. Possible error and warning messages that might print on the report are: Combination Not Found. This error occurs if the currency relationship does not exist. Currency Code Invalid. Address Number Invalid. Warning - Rate Exceeds Tolerance Limit. Warning - Exchange Rate Exists For Date. Exact Month/Year Match Error. This error might occur if you require that the effective date in the processing options match the effective date of the exchange rates for the currencies. Use this report to correct any errors, and then run the Calculate Cross Currency Rates program again.
Final	The system prints a report that lists the new exchange rates calculated based on the currency cross-rate relationships. It updates the F0015 table with the new exchange rates and effective date. A tolerance warning prints on the report when a new exchange rate differs from the previous rate by a certain percentage, as specified in the processing options for the Calculate Currency Cross Rates program. The system updates exchange rates that have tolerance warnings.

Mode

Description

Proof

The system prints a report that lists all currency relationships and the exchange rates that are calculated in final mode. Possible error and warning messages that might print on the report are:

Combination Not Found.
This error occurs if the currency relationship does not exist.
Currency Code Invalid.
Address Number Invalid.
Warning - Rate Exceeds Tolerance Limit.
Warning - Exchange Rate Exists For Date.
Exact Month/Year Match Error.
This error might occur if you require that the effective date in the processing options match the effective date of the exchange rates for the currencies.

Use this report to correct any errors, and then run the Calculate Cross Currency Rates program again.

Final

The system prints a report that lists the new exchange rates calculated based on the currency cross-rate relationships. It updates the F0015 table with the new exchange rates and effective date.

A tolerance warning prints on the report when a new exchange rate differs from the previous rate by a certain percentage, as specified in the processing options for the Calculate Currency Cross Rates program. The system updates exchange rates that have tolerance warnings.