Currency Exchange Rate Maintenance

Use this form to maintain the default rate for converting between a foreign currency and the base currency. You can also specify an exchange rate between two foreign currencies.

The rates you define default during transaction entry. You can change the default rate when you enter a transaction entry.

Options Reference

Each option and field on the form is described below. Mandatory options and fields are highlighted in red.

Date to use for exchange rate

Select one of these options to set the date to determine the exchange rate during transaction entry:

Not date based - This is the default option. The rates set up in the table on the System Rate Maintenance tab apply, regardless of the transaction date.
Document date - If you select this option, the Maintain Rates by Date form becomes available. You can enter exchange rates based on a date. The rate that defaults to transaction entry forms is determined by the transaction's document date, and the effective dates set up in the Maintain Rates by Date sheet.
Posting date - If you select this option, the Maintain Rates by Date form becomes available. You can enter exchange rates based on a date. The rate that defaults to transaction entry forms is determined by the transaction's posting date, and the effective dates set up in the Maintain Rates by Date sheet.

Automatically maintain inverse for date based rates

This option is enabled if either the Document date or Posting date option is selected as the date to use for exchange rates. Select the option if you want create or maintain an inverse for each currency rate you set up.

For example, if you set up a NZD to AUD rate, Greentree sets up an AUD to NZD rate. If you don't select this option, Greentree prompts you to confirm whether or not to update the inverse rate each time you set up or change a rate.

System Rate Maintenance Sheet

Enter non date-based rates on this sheet. Exchange rates can be up to eight decimal places, and you must specify whether the rate is a M (multiply) or D (divide) rate.

Example

To enter a New Zealand dollar to Australian dollar exchange rate, select the NZD code from the horizontal list and the AUD code from the vertical list. This rate is entered as 0.9000000 M - a NZD transaction for $100.00 is converted by into AUD with this calculation: $100.00NZD x 0.9 = $90.00AUD. When you enter a rate, the inverse rate populates the table.

In this example, Greentree sets the AUD/NZD rate to 1.11111111, which is 1 divided by 0.90000000.

Information

Use this rule of thumb adopted by banks when setting up exchange rates to reduce rounding errors:

If the foreign currency is worth more than the local currency (for example, 100 local converts to less than 100 foreign), use a multiply (M) rate. The rate is always less than 1 (for example, using 0.90 for NZD to AUD conversion).
If the foreign currency is worth less than the local currency (for example, 100 local converts to more than 100 foreign), use a divide (D) rate. The rate is always greater than 1 (for example, NZD100 = JPY6680, so use a rate of 66.80D).

Inverse rates should be set up using the same operator - for example, AUD to NZD would be 1.11111111M and JPY to NZD would be 0.01497006. Inverse rates are essential when using the Cash Management and General Ledger modules, where an Account to Transaction rate must be found if foreign currency general ledger accounts are used during transaction entry. You should ensure the Foreign to Local inverse updates each time the Local to Foreign rate is changed.

You should regularly update exchange rates, as the rates entered serve as the default when entering foreign transactions.

Maintain Rates by Date Sheet

If either the Document date or Posting date option is selected as the date to use for exchange rates, enter the date-based exchange rates on this form.

The exchange rate that you select to default during transaction entry uses the Effective Date that you enter, and either the Document date or Posting date of the transaction, depending on which date is being used for exchange rates.

Information You can select individual currencies to setup, or you can select All as the Currency from option, which change the form so all currencies display in the table. The Effective Date applies to all rates set up for the row. It is not required that a rate be set up for all currency codes in the row.