Understanding Exchange Rate Setup for Taiwan

If you process sales transactions in a currency other than TWD (Taiwan dollars), you must set up your system with the exchange rates provided by the Taiwan Customs Department. The Taiwan Customs Department publishes rates three times a month in this manner:

Use the rate published on the 5th day of the month for transactions dated from the 11th through the 20th.
Use the rate published on the 15th day of the month for transactions dated from the 21st through the last day of the month.
Use the rate published on the 25th day of the month for transactions dated from the 1st through the 10th of the next month.

Important: Because government regulations are subject to change, you should consult the current regulations to assure that you use the most current schedule.

You use the Ten-Days Exchange Rate Setup program (P0015A) to set up exchange rates to convert other currencies to the Taiwanese dollar. You specify the factor that the system uses to convert the currency as the no inverse method. This method is a calculation method that uses the same exchange rate for the multiplier and divisor rates. The no inverse method reduces the rounding differences that can occur when you work with large amounts using the inverse method and reciprocal rate. Any rounding differences that might occur with the no inverse method are usually immaterial.

When you set up an exchange rate for the no inverse method, the system automatically creates a corresponding record in the opposite direction. For example, if you set up an exchange rate record from USD to TWD for the no inverse method and specify conversion method Y for multiplier, the system automatically creates an exchange rate record from TWD to USD with conversion method Z for divisor. The two rates on these exchange rate records are the same: one is the multiplier rate and the other is the divisor rate. The opposite rate on each record is blank because, with no inverse, that rate has no purpose.

You must use a rate type different than blank to setup the Ten-Days Exchange Rates Setup program.

The system saves the effective dates for the exchanges rates in the Currency Exchange Rates table (F0015). Uses the 1st, 11th, or 21st of a month as effective dates.

You must not use the triangulation method when you run the Currency Exchange Rate Entry program to set up exchange rates for Taiwan. If you do so, the system displays an error when you run the Taiwan Ten-Days Exchange Rate program.

The system uses the rates and effective dates when you run the Taiwan Ten-Days Exchange Rate program (R75T1113U) to update sales order records.