Financial - Rates of Exchange

To access and perform actions in the module: Assign the permit Perform actions in Rates of Exchange module

Currency exchange rates are displayed in a table that is used to:

1. Manage the exchange rates between the system currency (your home currency) and other currencies with which your company transacts.

2. Define different exchange rates for selling to customers and buying from suppliers; the difference in rates allows you to increase your profit.

In order to work with various currencies, the rates of exchange must be entered into the system before work can begin.

All currencies must first be defined in Setup - Business Environment - Currencies.

Rates of exchange are always determined in relation to the system (home) currency. When buying in a currency different from the system currency and then selling in a currency different from the system currency, the rate of conversion is according to the system currency.

By default, the currency exchange rates are displayed according to the amount of currency required to sell or buy 1 unit of your system currency.

The Rates of Exchange table displays:

• Currency: Currency type displayed as a unique 3-character code

• Sell Exchange Rate: The current number of foreign currency units according to which you sell 1 unit of your system currency; this is the rate used with financial activity relating to the customer.

• Buy Exchange Rate: The current number of foreign currency units according to which you buy 1 unit of your system currency; this is the rate used with financial activity relating to the supplier.

• Last Update: The date and time of last currency update

• New Sell Exchange Rate: The editable field to update the current sell exchange rate

• New Buy Exchange Rate: The editable field to update the current buy exchange rate

To Edit Rates

1. In the New Exchange Rate columns, click the Sell or Buy rate that you want to edit. The rate will be highlighted in blue.

2. Enter the new rate.

3. Click Save.

Utilizing Rate Differences to Maximize Profits:

Different sell and buy rates can be utilized to maximize your profits. Similar to how banks work (selling currency at a high rate and buying currency at a low rate), you can define a higher exchange rate for selling services to customers and a lower exchange rate for buying services from suppliers.

To maximize profits, the service transaction must include three different currency types.

Note that three currencies (not necessarily different from one another) are always associated with a service transaction:

1. The system (home) currency

2. The travel file currency

3. The supplier's currency