Exchange Rates

Exchange rates designate the price at which the currency of one country is traded for the currency of another country.

You can use this subtask to establish exchange rates to pay vouchers in Euro and non-Euro currencies. The Euro is the currency used in Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, and Spain. 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 these 12 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 probably have existing records that reference the German Mark - the pre-Euro currency used in this 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, then converts the German Mark into Euros. Next, it converts Euros into U.S. dollars, thus determining the exchange rate.

As you enter and/or edit information in this subtask, you will discover that there are definitive relationships among the data in the Transaction, Pay, Rate Group, Rate Date, and Rate fields. You established these relationships in your setup of the Multicurrency screens (Administration » Maintain » Multicurrency). Costpoint calculates the exchange rate based on the validity of the data in these fields.

After you enter data in the Exchange Rates subtask, you can use the Find Rates button to refresh the fields and populate them with the new, re-calculated data.

You must click the Apply Rates button to update applicable fields in the header record and other subtasks displayed in the primary screen.

When should I use this subtask?

You must initialize the Multicurrency Settings, Exchange Rate Sources (Administration » Maintain » Multicurrency), Exchange Rates by Date (Administration » Maintain » Multicurrency) or Exchange Rates by Period (Administration » Maintain » Multicurrency), Exchange Rate Groups, and the Currency Status screens (Administration » Maintain » Multicurrency) before you enter data in this subtask.

Field Descriptions

Currencies

This field displays the transaction code, which represents the currency specified on the voucher. The transaction description displays in the adjacent, non-editable field.

The Japanese Yen (JPY), for example, might represent the transaction code on a voucher sent by a company in Japan to a company in the United States.

You can enter, or use Lookup to select, a different transaction code. The lookup data originates from the Currencies screen (Administration » Maintain » Multicurrency).

Costpoint populates this field by first retrieving data from the Vendor User Flow screen (Accounting » Maintain » Vendors). If no relevant information exists in this screen, the system retrieves data from the Multicurrency Settings screen.

This field displays the pay code, which represents the monetary unit you use to pay a voucher. The pay code description displays in the adjacent, non-editable field.

If you have not established a default pay code for this vendor, the value displayed in this field defaults from the Default Transaction field of the Multicurrency Settings screen.

You can enter, or use Lookup to select, a different pay code. The lookup data originates from the Currencies screen (Administration » Maintain » Multicurrency).

If you issue a partial payment to a voucher, you can use a different currency for each payment; therefore, you can use various pay codes until the voucher is paid in full.

This field may be labeled either Pay or Pay Currency.

This field displays the rate group code, which allows you to compare one currency to another. The rate group description displays in the adjacent, non-editable field.

The rate groups you create establish a relationship between currencies. This association must exist in order for you to determine exchange rates in this subtask.

For example, the Daily rate group might display 10 records. One record might compare the U.S. Dollar (USD) to the Japanese Yen (JPY), another record might compare the Dutch Gilder (NLG) to the British Pound (GBP), and the eight remaining records might include various other currency comparisons.

Costpoint populates this field by first retrieving data from the Rate Group field of the Currencies subtask of the Vendor User Flow screen (Accounting » Maintain » Vendors). If this field does not display data, Costpoint retrieves data from the Default Rate Group field of the Multicurrency Settings screen.

You can enter, or use Lookup to select, a different rate group code. The lookup data originates from the Exchange Rate Groups screen.

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 voucher; 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.

This field displays the exchange rate date. This could be the current date, the date you submitted a voucher payment, or any date for which you might calculate an exchange rate.

To calculate the exchange rate for another date, enter, or use Calendar Lookup to select, a different date. The date must be in MM/DD/YYYY format.

The date you enter in this field must be valid based on the data in the Transaction and Rate Group fields. This date also must be valid based on the parameters established for records in the Multicurrency screens (Administration » Maintain » Multicurrency).

After entering a new date, click the Find Rates button to refresh the data in this group box and calculate the exchange rate using the new date.

If you change a Rate Date, the system displays the following message:

"The transactional to functional rate date has been changed. Do you want the functional to pay rate date to match the newly entered date?"

Click OK to if you want to use this Rate Date in both group boxes, or Cancel if you want the other Rate Date to be different.

This non-editable field displays the rate amount.

If the transaction and functional currencies are the same, no rate determination is necessary. In that case, this field displays 1.0000000.

If the transaction and functional currencies are different, the system calculates the rate using the parameters established for records in the Multicurrency screens (Administration » Maintain » Multicurrency).

Example

The value in the Rate field is determined based on the method you use to track exchange rates.

If you track exchange rates by date, the rate defaults from the Rate Amount field in the Exchange Rates by Date screen (Administration » Maintain » Multicurrency).

For example, the Daily rate group record in the Exchange Rates by Date screen (Administration » Maintain » Multicurrency) might display exchange rate comparisons between the British Pound (GBP) and the U.S. Dollar (USD). The Starting Date field in this screen might display 01/01/2006, the Ending Date field, 12/31/2006, and the Rate Amount field, .6000000.

The Exchange Rates subtask might display GBP in the Transaction field, Daily in the Rate Group field, and 01/15/06 in the Rate Date field. In addition, the U.S. Dollar (USD) might represent the functional currency.

In this circumstance, the Rate field in the Exchange Rates subtask displays .6000000 because this is the Rate Amount associated with the Transaction, Rate Group, and Rate Date combination.

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 is labeled Trans to Func.

You can edit this field only if you selected the Allow users to override exchange rates check box in the Multicurrency Settings screen.

The system determines this rate using the parameters you established for records in the Multicurrency screens (Administration » Maintain » Multicurrency). (Example)

If you track non-Euro exchange rates by date, this field displays a value that defaults from the Rate Amount field in the Exchange Rates by Date screen (Administration » Maintain » Multicurrency).

If you track non-Euro exchange rates by period, this field displays a value that defaults from the Period-Average Rate field of the Exchange Rates by Period screen (Administration » Maintain » Multicurrency).

Whether you track non-Euro currency exchange rates by date or period, the rate amount is retrieved based on the validity of the data in the Transaction, Rate Group, and Rate Date fields.

The value displayed in the Trans to Func field is always the same as the value displayed in the Rate field.

Since the value in the Rate field is non-editable, you can use the Trans to Func field to indirectly change the value in the Rate field.

For example, the Rate and Trans to Func fields might display ".6000000," based on the U.S. Dollar (USD) to Japanese Yen (JPY) exchange rates. If the exchange rate changed to ".8500000," you could manually modify the data in the Trans to Func field to reflect this new rate.

Updating the value in the Trans to Func field updates the value in the Rate field with the equivalent amount.

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 Currency Status screen (Administration » Maintain » Multicurrency). This field is labeled Trans to Euro.

In this case, the currency displayed in the Currency Status record must be consistent with the Euro currency in this screen.

This field displays 1.0000000 and is non-editable if you convert a non-Euro currency.

In addition, if you convert a non-Euro currency, this field is labeled N/A.

If you convert a Euro currency, you must have completed setup of the Currency Status screen (Administration » Maintain » Multicurrency). In that case, this field is 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 value in the Rate Amount field of the Exchange Rates by Date screen (Administration » Maintain » Multicurrency).

In this circumstance, the 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, Rate Group, and Rate Date fields.

Updating the value in the Euro to Func field updates the value in the Rate field with the equivalent amount.

You can edit the Euro to Func field only if you selected the Allow users to override exchange rates check box in the Multicurrency Settings screen.

Click this button to refresh the fields in this group box and retrieve updated exchange rate information using data from the Transaction, Rate Group, and Rate Date fields.

If you add or modify data in this subtask, you must click this button to display new, re-calculated exchange rate information.

Select this check box to suspend or halt any activity associated with the exchange rate information referenced in this subtask. This suspension occurs 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 that 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 .2000000, as it relates to the Dutch Gilder (NLG) and U.S. Dollar (USD) transaction to functional exchange rate, this value does not change as long as the Freeze Rate check box is selected. Although the actual, real-time rate may fluctuate, the data in this subtask remains constant.

In addition, if you select the Freeze Rate check box, this transaction is excluded when you execute the Update Open A/P Exchange Rates process.

The Update Open A/P Exchange Rates process inserts the most current exchange rate into the history tables to allow the calculation of unrealized gains and losses.

Functional Currency to Pay Currency Exchange Rate Info

Use the fields in this group box to convert the functional currency into the pay currency. The fields in this group box are disabled for those vouchers that have the same transaction and pay currency.

This field displays the exchange rate date. This could be the current date, the date you entered the voucher, or any date for which you might calculate an exchange rate.

To calculate the exchange rate for another date, enter, or use Calendar Lookup to select, a different date. The date must be in MM/DD/YYYY format.

After entering a new date, click the Find Rates button to refresh the data in this group box and calculate the exchange rate using the new date.

If you changed an existing Rate Date, the system displays the following message:

"The functional to pay rate date has been changed. Do you want the transactional to functional rate date to match the newly entered date?"

Click OK to if you want to use this Rate Date in both group boxes, or Cancel if you want the other Rate Date to be different.

This non-editable field displays the rate amount.

If the functional and pay currencies are the same, no rate determination is necessary. In that case, this field displays 1.0000000.

If the functional and pay currencies are different, the system determines the rate using the parameters you established for records in the Multicurrency screens (Administration » Maintain » Multicurrency).

Example

The value in the Rate field is determined based on the method you use to track exchange rates.

If you track exchange rates by date, the rate defaults from the Rate Amount field in the Exchange Rates by Date screen (Administration » Maintain » Multicurrency).

For example, the Daily rate group record in the Exchange Rates by Date screen (Administration » Maintain » Multicurrency) might display exchange rate comparisons between the U.S. Dollar (USD) and the British Pound (GBP). The Starting Date field in this screen might display 01/01/2006, the Ending Date field, 12/31/2006, and the Rate Amount field, .6000000.

The Exchange Rates subtask might display GBP in the Pay field, Daily in the Rate Group field, and 01/15/06 in the Rate Date field. In addition, the U.S. Dollar (USD) might represent the functional currency.

In this circumstance, the Rate field in the Exchange Rates subtask displays .6000000 because this is the Rate Amount associated with the Pay, Rate Group, and Rate Date combination.

This field displays the functional currency to pay currency exchange rate if you calculate the exchange rate for a non-Euro currency.

In this circumstance, this field will be labeled Func to Pay.

If the functional and pay currencies are the same, this field displays 1.0000000.

If the functional and pay currencies are different, the system determines this value using the parameters you established for records in the Multicurrency screens (Administration » Maintain » Multicurrency). (Example)

Whether you track non-Euro currency exchange rates by date or period, the value defaults based on the validity of the data in the Pay, Rate Group, and Rate Date fields of the Exchange Rates subtask.

The value displayed in the Func to Pay field is equivalent to the value displayed in the Rate field.

Since the value in the Rate field is non-editable, the Func to Pay field allows you an opportunity to indirectly change the value in the Rate field.

For example, the Rate and Func to Pay fields might display ".6000000," based on the U.S. Dollar (USD) to Japanese Yen (JPY) exchange rates. If the current exchange rate changed to ".8500000," you could manually modify the data in the Func to Pay field to reflect the new rate.

Updating the value in the Func to Pay field updates the value in the Rate field with the equivalent amount.

If you calculate the exchange rate associated with a Euro currency, this field displays a functional currency to Euro currency calculation; in addition, this field will be labeled Func to Euro.

You can modify this field only if you selected the Allow users to override exchange rates checkbox in the Multicurrency Settings screen.

This field displays 1.0000000 and is non-editable if you convert a non-Euro currency.

In addition, if you convert a non-Euro currency, this field is labeled N/A.

If you convert a Euro currency, you must have completed setup of the Currency Status screen (Administration » Maintain » Multicurrency). In that case, this field is labeled Euro to Pay.

If, for example, you track exchange rates by date and convert a Euro currency, the data in this field defaults from the value in the Euro-to-Currency Exchange Rate field of the Currency Status screen (Administration » Maintain » Multicurrency).

The value defaults based on the validity of the data in the Pay, Rate Group, and Rate Date fields.

Click this button to refresh the fields in this group box and retrieve updated exchange rate information using data from the Pay, Rate Group, and Rate Date fields.

If you add or modify data in this subtask, you must click this button to display new, re-calculated exchange rate information.

Select this check box to suspend or halt any activity associated with the exchange rate information referenced in this subtask. This suspension occurs after the transaction has posted.

In addition, if you select the Freeze Rate check box, this transaction is excluded when you execute the Update Open A/P Exchange Rates process.

The Update Open A/P Exchange Rates process inserts the most current exchange rate into the history tables to allow the calculation of unrealized gains and losses.

Click this button to update information in the header record and any applicable subtasks in the primary screen with the new exchange rate information.

This button applies the new exchange rate data to other applicable fields in this screen.

For example, if you change the data in the Pay, Rate Group, and/or Rate Date fields, you must click the Find Rates button to display the updated exchange rate information.

Clicking the Apply Rates button synchronizes the header information and all applicable subtasks in the primary screen so that they are consistent with the information in this subtask.