Exchange Rates

When you post a transaction, DPS checks to see if the various currency types (transaction, functional, billing, and project) are the same. If they differ, DPS performs a currency exchange.

Calculations

If the transaction currency is the same as the project or billing currency, when a transaction is posted, the transaction amount is assigned directly to the project or billing amount. However, if the currencies differ, DPS automatically:

  1. Calculates exchanges between the transaction currency and the functional currency of the company that owns the project, phase, or task associated with the transaction. The organization structure determines the company that owns the project, phase, or task.
  2. Calculates exchanges between the functional currency and the project currency and the billing currency, using the fixed exchange rate (if one has been entered).

Daily Exchange Rates

By default, DPS uses the daily exchange rate in effect on the date that you enter for the transaction. You can override an exchange rate for any transaction. You set up daily exchange rates in Settings > Currency > Daily Exchange Rates

Period Exchange Rates

The period exchange rates that you set up affect consolidated reporting. You establish period exchange rates in Settings > Currency > Period Exchange Rates

Related Topics:

  • Exchange Rates Hierarchy
    DPS follows a hierarchy in determining what exchange rate to use.
  • Direct Exchanges
    Each time a transaction is posted, its value is stored in the transaction currency and in multiple other currencies, used for billing, reporting, and other business needs. When the transaction currency is different from the other currencies, a direct currency exchange must take place.
  • Inverse Exchanges
    If a direct exchange rate between two currencies is not entered in the exchange rate table, but you have specified an exchange rate for the same currencies in reverse, DPS converts the currency based on an inverse exchange rate.
  • Triangulation Currency and Exchange Rates
    Triangulation is a method of currency exchange in which one currency amount is converted to another through an intermediate currency. As part of selecting currencies for your company, you can select a triangulation currency.
  • Overrides to Exchange Rates and Dates
    When you post a transaction, DPS normally uses the exchange rate in effect on the date that you enter for the transaction. However, you can use the Currency Override dialog box to specify a different exchange rate during Transaction Entry.
Parent Topic: Multiple Currencies