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:
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. |