Exchange Rates Subtask

Use this subtask to add, edit, and/or view exchange rate information.

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 in order to send invoices. Invoices represent bills you send to companies as a request for payment for services rendered.

You can also use this subtask to determine exchange rates for non-Euro and 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, 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 now uses the Euro, the labels (field names) in this subtask will 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, will be labeled Trans to Func and N/A, respectively.

As you enter and/or edit information in 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 in the Exchange Rates subtask, you can use the Find Rates button to refresh the fields in this subtask and populate them with the new, recalculated data. You must click the Apply Rates button to update applicable fields in the header record and other subtasks displayed in 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 in this subtask.

Contents

Field	Description
Transaction Currency	This field displays the transaction code. The transaction description displays in the adjacent, non-editable field. The transaction code represents the currency specified on the invoice. Costpoint populates this field by first retrieving data from the Transaction field of the Multicurrency subtask of the Manage Customers screen. If this field does not display data, Costpoint retrieves data from the Billing Currency field on the Other Info tab of the Manage Project Billing Information, if applicable. In this circumstance, the Transaction Currency  defaults from the Billing Currency field specific to the project entered on the invoice. Finally, if this field does not display data, Costpoint retrieves data from the Default Transaction field of the Configure Multicurrency Settings screen. You can enter, or use Lookup to select, a different transaction code. The data available in the Lookup originates from the Manage Currencies screen. The Japanese Yen (JPY), for example, might represent the transaction code on an invoice sent to a company in Japan by a company in the United States. The transaction code will print on the invoice.
Rate Group	This field displays the rate group code. The rate group description displays in the adjacent, non-editable field. The rate group allows you to compare one currency to another. Costpoint populates this field by first retrieving data from the Rate Group field on the Multicurrency subtask of the Manage Customers screen. If this field does not display data, Costpoint retrieves data from the Billing Currency field on the Other Info tab of the Manage Project Billing Information screen, if applicable. In this circumstance, the Transaction Currency  defaults from the Billing Currency field specific to the project entered on the invoice. Finally, if this field does not display data, Costpoint retrieves data from the Default Rate Group field on the Configure Multicurrency Settings screen. 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 "Daily" rate group, for example, 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. 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.

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; 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 or the date you entered on the invoice. In addition, it might represent a more arbitrary date such as any one for which you calculated an exchange rate. Enter, or use Calendar Lookup to select, a different date. You must enter the date in the MM/DD/YYYY format. In order to determine the exchange rates in 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 in the Multicurrency screens. For example, if you track exchange rates by date, the date you enter in the Rate Date field in 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. 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. 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 in the Multicurrency screens. 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. For example, the "Daily" rate group record in the Exchange Rates by Date screen 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 Currency 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 will display ".6000000" because this is the value in the Rate Amount  field of the Exchange Rates by Date screen, which is associated with the Transaction Currency, Rate Group, and Rate Date combination.
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 in the Multicurrency screens. 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 on 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 in this screen. Example If you track non-Euro exchange rates by date, this field displays a value that defaults from the Rate Amount field of the Exchange Rates by Date screen. 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. Whether you track non-Euro currency exchange rates by date or period, the value defaults based on the validity of the data in the Transaction Currency, Rate Group, and Rate Date fields of the Exchange Rates subtask. The value displayed in the Trans to Func field is equivalent to 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 current exchange rate changed to ".8500000," you could manually modify the data in the Trans to Func field to reflect the new rate. Updating the value in the Trans to Func field updates the value in the Rate field with the equivalent amount.
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 on the Manage Exchange Rates by Date screen. 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 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 in 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 in 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 ".2000000," as it relates to the Dutch Gilder (NLG) 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 in 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 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 Rates	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 Transaction Currency, Rate Group, and/or Rate Date fields, you must click the Find Rates button to display the updated exchange rate information in this subtask. Clicking the Apply Rates button synchronizes the header information and all applicable subtasks in the primary screen so they are consistent with the information in this subtask.
OK	Click this button to close or hide the subtask. Note: Select the appropriate check box and the Action icon to execute synchronization.