D.1 OFSAA Rate Management

OFSAA Rate Management is a rate management utility that enables users to manage interest rates, exchange rates, and currency data with a high degree of security and control. As part of OFSAA Infrastructure, OFSAA Rate Management handles all currency definitions for OFS Analytical Applications. Currencies are referred to by code and written description. A comprehensive list of ISO-defined currencies is included, and users can define and add additional currencies.

Upon installation, one currency is active and ready for processing: the one identified by your organization as the functional currency (for more information, see Functional Currency). You may activate other currencies and define and activate newly created currencies as needed.

You may define, input, and maintain exchange rates between any two active currencies. In addition to the standard floating exchange relationships, special fixed relationships are available (For example, used before 2000 in the European Monetary Union). OFSAA Rate Management complies with EMU structure and legislation and supports changes in currency rates as well as additions and deletions of the currencies of member countries.

Exchange rates between currencies used in Profitability Management allocations are reciprocal. The rate of exchange between two currencies must be arbitrage-free. Profitability Management does not calculate any currency exchange offsets for non-reciprocal exchange rates.