Additional Information for the Exchange Rates Subtask
Use this subtask to add, edit, and/or view exchange rate information for a transaction, if applicable.
Exchange rates designate the price at which the currency of one country is traded for the currency of another country.
You can also use this subtask to determine exchange rates for non-Euro and Euro currencies. The Euro is the currency used in France, Germany, Italy, Spain, and a number of other European Union countries. Non-Euro currencies represent the legal tender used in the remaining countries.
Since it is possible that your existing Costpoint databases contain records that reference the pre-Euro currencies used by the Euro countries, Costpoint uses "triangulation," a three-part conversion method, to determine exchange rates in this circumstance. For example, Germany now uses the Euro; however, you may have existing records that reference the German Mark - the pre-Euro currency used in that country. If you attempt to convert the German Mark into U.S. Dollars (USD), Costpoint performs this conversion internally using triangulation. This process examines the first currency, the German Mark, and converts the German Mark into Euros. Next, the triangulation process continues by converting Euros into U.S. dollars, thus determining the exchange rate.
If you attempt to determine the exchange rate for any country that will use the Euro in the future, the labels (field names) on this subtask may vary. Euro currencies will be associated with the Trans to Euro and Euro to Func labels. The same fields, when associated with non-Euro currencies, or with currencies that have already converted to the Euro, will be labeled Trans to Func and N/A, respectively.
As you enter and/or edit information on this subtask, you will discover that there are definitive relationships among the data in the Transaction Currency, Rate Group, Rate Date, and Rate fields. Costpoint calculates the exchange rate based on the validity of the data in these fields.
After you enter data on the Exchange Rates subtask, you can use the Find Rates button to refresh the fields on this subtask and populate them with the new, recalculated data. You must click the Apply or Apply Rates button to update applicable fields in the header record and other subtasks displayed on the primary screen.
You must initialize the Configure Multicurrency Settings, Manage Exchange Rate Sources, Manage Exchange Rates by Date or Manage Exchange Rates by Period, Manage Exchange Rate Groups, and the Manage Currency Status screens before you enter data on this subtask.
Contents
| Field | Description |
|---|---|
| Transaction Currency |
This field displays the transaction currency code. The transaction currency description displays in the adjacent, non-editable field. You can enter, or use Lookup to select, a different transaction code, if applicable. The data available in the Lookup originates from the Manage Currencies screen. The Japanese Yen (JPY), for example, might represent the transaction currency code on an invoice sent to a company in Japan by a company in the United States. |
| Rate Group |
This field displays the rate group code for the transaction, but it can usually be changed here. The rate group description displays in the adjacent, non-editable field. The rate group allows you to compare one currency to another. The source of the Rate Group data will be different depending on the type of transaction you are working with. You can enter, or use Lookup to select, a different rate group code. The data available in the Lookup originates from the Manage Exchange Rate Groups screen. The rate groups you create establish a relationship between currencies. This association must exist in order for you to determine exchange rates on this subtask. |
Transaction Currency to Functional Currency Exchange Rate Info
Use the fields in this group box to convert the transaction currency into your company's functional currency. The transaction currency represents the currency specified on the invoice, voucher, or other transactional document; the functional currency represents your company's primary or base currency. You can modify the data in this group box, or you can simply view existing exchange rate information.
| Field | Description |
|---|---|
| Rate Date |
This field displays the exchange rate date. The displayed date might represent the current date, the date you entered on the invoice, or a different date that was used to calculate the exchange rate. Enter, or use Calendar Lookup to select, a different date. In order to determine the exchange rates on this subtask, the date you enter in the Rate Date field must be valid based on the data in the Transaction Currency and Rate Group fields. This date also must be valid based on the parameters you established for the records on the Multicurrency screens. For example, if you track exchange rates by date, the date you enter in the Rate Date field on this subtask must fall within the date range specified in the Starting Date and Ending Date fields of the Manage Exchange Rates by Date screen for the selected Rate Group. Likewise, if you track exchange rates by period and select the Use period rate, if available check box on the Configure Multicurrency Settings screen, the date you enter must fall within the date range specified in the Fiscal Year, Period, Period Start Date, and Period End Date fields of the Manage Exchange Rates by Period screen for the selected Rate Group. If an Exchange Rate by Date record exists for the same rate group, the Rate by Date will be used instead. If you convert a Euro currency, you also must establish records on the Manage Currency Status screen. After you enter or change an existing date, you must click the Find Rates button to refresh the data in this group box and calculate the exchange rate using the new date. |
| Rate |
This non-editable field displays the rate amount. If the transaction and functional currencies are the same, no rate determination will be necessary. In this case, this field displays "1.0000000." If the transaction and functional currencies are different, the system calculates the rate using the parameters you established for records on the Multicurrency screens. |
| Trans to Func (Trans to Euro) |
This field displays the transaction to functional exchange rate if you calculate the exchange rate for a non-Euro currency. In this circumstance, this field will be labeled Trans to Func. You can edit this field only if you selected the Allow users to override exchange rates check box on the Configure Multicurrency Settings screen. The system determines this rate using the parameters you established for records on the Multicurrency screens. For example: if you calculate the exchange rate associated with a Euro currency, the system calculates the value in this field by dividing "1" by the value in the Euro-to-Currency Exchange Rate field of the Manage Currency Status screen. This field will be labeled Trans to Euro. In this case, the currency displayed on the Manage Currency Status record must be consistent with the Euro currency on this screen. |
| N/A (Euro to Func) |
This field displays "1.0000000" and will be non-editable if you convert a non-Euro currency. In addition, if you convert a non-Euro currency, this field will be labeled N/A. If you convert a Euro currency, you must have completed setup of the Manage Currency Status screen. In this case, this field will be labeled Euro to Func. If, for example, you track exchange rates by date and convert a Euro currency, the data in this field defaults from the Rate Amount field of the Manage Exchange Rates by Date screen. In this circumstance, the Manage Exchange Rates by Date record should be associated with the actual "EUR" currency. This currency should be linked to the functional currency in this record. The value defaults based on the validity of the data in the Transaction Currency, Rate Group, and Rate Date fields. The Euro to Func field will be editable only if you selected the Allow users to override exchange rates check box on the Configure Multicurrency Settings screen. Modifying the value in the Euro to Func field updates the value in the Rate field. |
| Find Rates |
Click this button to refresh the fields in this group box and retrieve updated exchange rate information using the data in the Transaction Currency, Rate Group, and Rate Date fields. If you add or modify data on this subtask, you must click this button to display new, recalculated exchange rate information. |
| Freeze Rate |
Select this check box to suspend or halt any activity associated with the exchange rate information referenced on this subtask. This suspension will occur after the transaction has posted. After the transaction has posted, Costpoint ignores any subsequent updates to the exchange rate throughout the life of this record. In this case, all evaluations of this record are based on the exchange rate at the time the transaction posted. For example, if the Rate field displays "1.334256," as it relates to the European Union Euro (EUR) and U.S. Dollar (USD) transaction to functional exchange rate, this value will not change as long as the Freeze Rate check box is selected. Although the actual, real-time rate may fluctuate, the data on this subtask will remain constant. In addition, if you select the Freeze Rate check box, this transaction will be excluded when you execute the Update Open Accounts Receivable Exchange Rates or Update Open Accounts Payable Exchange Rates process. The Update Open Accounts Receivable Exchange Rates process inserts the most current exchange rate into the history tables to allow the calculation of unrealized gains and losses. |
| Apply/Apply Rates |
Click this button to update information in the header record and any applicable subtasks on the primary screen with the new exchange rate information. This button applies the new exchange rate data to other applicable fields on this screen. For example, if you change the data in the Transaction Currency, Rate Group, and/or Rate Date fields, you must click the Find Rates button to display the updated exchange rate information on this subtask. Clicking the Apply button synchronizes the header information and all applicable subtasks on the primary screen so they are consistent with the information on this subtask. |