3.16.19.1 FX Logic

This topic provides the information about the FX Logic details.

The FX rate will not be considered between transaction base currency and fund price currency for currency of expression fund transactions if they are same. This is applicable for subscriptions, redemptions and switch (normal and pseudo) transactions.

The system will use the transaction price currency to get the load; and after applying the load, the net amount and gross amount will get calculated in fund price currency and FBC as well. The currency of expression factor is applied to derive values in fund base currency. The net, gross and load amount will be calculated in currency of expression for a currency of expression transaction and using the COE factor the same is stored in fund base currency only. For a transaction placed using one of the fund price currency; in the project allocation/ allocation tab, the load amount in fee currency and vat amount in fee currency field will display the value in fund price currency only irrespective of the fee calculation basis value of the transaction.

For currency of expression transactions the exchange rate applied field during transaction capture will be defaulted to 1. If you change it, then while saving, the system will display warning message as This is a currency of expression transaction and exchange rate will be defaulted to 1 by the system. This message is shown if do not click the Enrich button after changing the exchange rate. The amount applied field will show the values in fund base currency.

If you change the exchange rate and click Enrich button, then the system default the value to 1 while saving without any warning message.

Note:

The rounding precision for fund price currencies will be base price.

If the transactions are posted using fund price currencies then the system computes the load amount, net and gross amount in FBC using the COE factor. The display of these fields is mandatory fields that are to be computed as part of core allocation process. The exchange rate field will show default value as 1 in this case as COE factor is applied.

If there is no price available for the fund price currency during transaction input, the system will use the par value to arrive at the price. While saving the transaction, the system will display an override message as Price not available for the price currency and the system will use the par value for the transaction. If you continue, then the system will use the par value for processing the transactions. The unit price in project allocation will display FPC price. This logic will be for project allocation but during menu allocation or batch allocation, if the price is still not available, then the transaction will not be allotted.