Defining Rate Types

Rate types are associated with foreign exchange rates for use with profiles or reconciliations. You need to define Rate Types when you require translation of transactions entered into the reconciliation. Configure only rate types used for period end balance translation in the source systems being reconciled.

For example, if Preparers are adding transactions in the Entered currency bucket, then the system can translate these values to the Functional currency bucket using imported rates. Each Rate is associated with a Rate Type.

When foreign exchange rates are imported from source systems, they are associated with a rate type. Assign profiles and reconciliations that require foreign exchange translation a rate type that matches the rate type used for balance translation in the source system. When Account Reconciliation calculates foreign currency transaction values in a reconciliation, it uses the rates associated with the rate type assigned to the reconciliation.