Exchange Ratios

If an agreement contains two or more different items (items with different values), you might need a method to balance them. You can define exchange ratios for quantity agreements if the agreements contain items of unequal value.

To define exchange ratios, designate an item as the balancing item, list the ratios for the unlike items, and specify effective and expiration dates for the ratio. The ratio must equal one unit of measure for the balancing item. You can have only one balancing item per agreement.

For example, suppose you have an exchange agreement with a partner to exchange unleaded gasoline for various additives or lubricants. Liter for liter, the items are not of equal value. According to the agreement, the exchange requires that you receive more liters of gasoline for every liter of additive and lubricant that you provide.

Product	Product Multiplier	Balance Multiplier
Unleaded gasoline (balancing item)	1	1
Additive	1	1.5