How are currency exchange rates determined

Specifies how exchange rates for foreign currencies are to be recorded and how to determine the date from which they are valid. For example, you can enter exchange rates for each currency daily, monthly, quarterly, or at other time intervals.

You can enter exchange rates for each of the codes in the currency. In the Currencies window, click Exchange Rates. The "Currency Exchange Rates" window is displayed for the relevant currency.

When you post a business transaction in a foreign currency, the application uses the posting date of the invoice line or journal line and the data from the Currency Exchange Rate table to find the appropriate exchange rate. If no posting date is specified (for example on an order proposal), the application uses the working date to find the appropriate exchange rate.

If you are posting in a reporting currency, the application also uses this table to determine the appropriate exchange rate for the general ledger entries to calculate the amounts in the reporting currency.

Note that to post exchange rate gains and losses, you have to use the batch job Regulate exchange rates and specify the regulated exchange rates used by the batch job. You enter the regulated exchange rates by entering the field Regulation of exchange rate amount and the field Bez. A. Reg. Exchange rate amount to complete.

Important
When posting in a reporting currency, you must retain any data that you enter in the table for that currency.

See also