About Exchange Rates

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If you use multicurrency accounting, exchange rate information appears on the Rates tab of transaction entry screens when you enter documents for customers who do not use your company's functional currency.

By default, Order Entry uses the document date as the default rate date for each document. If you change the rate date, Order Entry checks the rate tables and updates the rate.

About the Rates Tab

On transaction entry screens, you use the Rates tab to view and edit rate information for currency conversion.

The Rates tab can show the following groups of exchange rate information:

Order Exchange Rate (if you are creating or have created an order)
Shipment Exchange Rate (if you are shipping or have shipped goods)
Invoice Exchange Rate (if you are creating or have created an invoice)
Credit Note Exchange Rate or Debit Note Exchange Rate (if you are creating a credit note or a debit note)

If the tax group for this document uses a different currency than the customer's currency or your functional currency, the tab also shows the rates for converting document amounts to the tax reporting currency.

You use the Rates tab to:

Change the rate type, rate date, and exchange rate for converting the order, credit note, or debit note amounts from the customer's currency to your company's functional currency.
If you are shipping goods, change rate information for converting the shipped amount from customer's currency.
If you are invoicing shipped goods, change rate information for the invoice.
If you are reporting taxes in a different currency than you collect them, enter or derive the rate for converting amounts to the tax reporting currency.
If Order Entry automatically calculates amounts in the tax reporting currency, it uses the tax reporting currency exchange rate that appears on this tab.
If you manually entered a tax amount in the tax reporting currency, click Derive Rate to calculate the exchange rate for the tax reporting currency.

Defining Rate Types

Rate types specify how source currency amounts are converted to their equivalent amounts in your company's functional currency. Examples of rate types might be "Daily spot rate," "Monthly average rate," "Contract rate," and "Forward rate."

Example: You might define the rate type "Forward rate" to describe the rate at which a bank is willing to exchange one currency for another at a specified future date.

If you use multicurrency accounting, you use the Currency Rate Types screen to define rate types for the exchange rates you use.

Changing Exchange Rates

You can change rates manually on the Rates tab, or you can change the tax totals on the Taxes tab and then derive the new rate on the Rates tab.

When changing exchange rates, remember the following points:

You cannot change the rate after an order has been invoiced.
When you change the rate for the tax reporting currency on the Rates tab:
- If you calculate taxes automatically, Order Entry updates the tax reporting amounts on the Taxes tab automatically.
- If you do not calculate taxes automatically, Order Entry updates these amounts when you click the Calculate Taxes button.
If you clear the Calculate Tax option and change the tax reporting amount on the Taxes tab, you must redistribute the new tax amount to the detail lines, and then enter the new tax reporting exchange rate on the Rates tab. (To calculate the new exchange rate, click the Derive Rate button.) If you do this, you cannot post the document unless the tax reporting exchange rate is correct for the tax reporting amount on the Taxes tab. Also, the tax reporting amounts for the document details must match the total tax reporting amount on the Taxes tab.