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This text refers to program version 4.0  

Exchange Rates

The Exchange Rate register in the System module is used to enter conversion rates between foreign Currencies and the home Currency. If the Dual-Base system is being used, foreign Currencies can be related to either Base Currency (although in transitional countries, foreign Currencies should be related to the Euro only). Each time an Exchange Rate changes, you should enter a new record to the register rather than modifying an existing record. This ensures an accurate history will be created which will then be used when currency conversions are required when producing reports.

This register should be used for all Exchange Rates except those between the two Base Currencies. These should be stored in the Base Currency Rates setting in the System module.

Clicking on the [Exchange Rates] button in the Master Control panel in the System module (or selecting 'Exchange Rates' from the Registers menu) brings up the 'Exchange Rates: Browse' window, showing Exchange Rates already entered. Click the [New] button in the Button Bar to enter a new record, or select an Exchange Rate similar to the one you want to enter and click [Duplicate] on the Button Bar.

The 'Exchange Rate: New' window is shown, empty if you clicked [New] or containing a duplicate of the highlighted Exchange Rate. In the case of the duplicate, the Date of the new Exchange Rate will be the current date, not the date of the original Exchange Rate.

Currency

Paste Special    Currency register, System module

Enter the Currency Code of the foreign Currency.

Date

Paste Special    Current Date

The earliest date for which the Exchange Rate is valid.

The current Exchange Rate for a particular Currency is that with the most recent date: this will be used as a default when entering new transactions that are in Currency.

When producing reports, a choice is usually offered whereby all transactions can be converted using the current Exchange Rate or using the Exchange Rate current at the time of the transaction.

!	When an Exchange Rate changes, always create a new record in the Exchange Rate register. Do not change an existing record.

Rate

Enter the Exchange Rate here in the form of a ratio. In the example illustration where the simple conversion system is being used, 1.62 units of the foreign Currency (USD) will buy one unit of Base Currency 1 (GBP). Up to six decimal places can be used.

Users in transitional countries should relate foreign Currencies to the Euro only (not the home Currency), so only that Base Currency field representing the Euro (usually Base Currency 2) should be used. Wherever a Currency is related to the Euro, the ratio must show how many units can be bought with one Euro.

A default Exchange Rate can be offered for each Currency, and minimum and maximum Exchange Rates can be defined. This is done using the 'Span' card of the Currency record.

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