Exchange Rates Overview

When you post a transaction, Vision checks to see if the various currency types (transaction, functional, billing, and project) are the same. If they differ, Vision must perform 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, Vision automatically:

  1. Calculates exchanges between the transaction currency and the functional currency of the company that owns the project, phase, or task charged by 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, Vision 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.

Period Exchange Rates

The period exchange rates that you set up affect consolidated reporting.

Related Topics:

  • Exchange Rates Hierarchy
    Vision follows a particular 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, then Vision converts the currency based on an inverse exchange rate.
  • Triangulation Currency and Exchange Rates
    Triangulation is the 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 on Exchange Rates and Dates
    When you post a transaction, Vision 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 change the exchange rate during Transaction Entry.
Parent Topic: Multicurrency Overview