User Manual - Cross Currency Rate

Overview 

Cross rates are the relation of two currencies against each other, based on the rate of each of them against a third currency. For example, EUR to USD and USD to GBP is present in the system. This feature will calculate currency conversion from EUR to GBP. 

In order to achieve this, we have introduced "Currency Rate Setting" window and "Calculate Cross Currency Rate" process. 

Window: Currency Rate Setting 

This window allow the user to enter multiple currency combination. On this basis of this data, process will calculate the cross rate.  

To open the "Currency Rate Setting" window, navigate to Menu> >Company and Global Setting >> Global Setting or search for Currency Rate Setting in the search utility available in the menu itself 

Open

The setting shown in the above screenshot is done to create EUR to GBP and GBP to EUR in (*) organization with currency type SPOT . The process will use EUR to USD and GBP to USD multiply rate present on "Currency Rate" window for the calculation. 

• Select the "Organization in which needs to create a cross rate. 

• "Name" will be used for the identification. 

• "Common Currency" Indicates the currency against which, both currency rates are present. 

• "From Currency" Indicates the from currency against which currency rates are required.  

• "To Currency" Indicates the target currency against which currency rates are required.  

Open

All currency related field will only show "My Currency". 

"From Currency and TO Currency" should not be the same. 

"Common Currency" and "From Currency" should not be the same 

"Common Currency" and "To Currency" Should not be the same 

Inactive "Currency Rate Setting" and "Currency Rate" will not be considered for the calculation.  

Process: Calculate Cross Currency Rate 

This process will calculate the cross currency rate based on the setting present on "Cross Rate Setting".  This process does not have any parameter. 

The process can be configured on scheduler. 

To open the "Calculate Cross Currency Rate" process, navigate to Menu> >Company and Global Setting >> Global Setting or search for Calculate Cross Currency Rate in the search utility available in the menu itself 

How to Use 

We will understand this with below cases. 

• When "From Date" and "To Date" are same for both currency 

• When "From Date" and "To Date" are different for both currency 

Case 1. When "From Date" and "To Date" are same for both currency 

We are getting currency rates from a bank from EUR to USD and GBP to USD. However bank is not providing currency rate EUR to GBP. Assume bank provide the below rates. 

1. The user will do the setting on "Currency Rate window", as shown in first screenshot. 

2. Run "Calculate Cross Currency Rate" process. 

3. The process will check the setting on "Cross Rate Setting" window. 

4. Process will pick the "Multiply Rate" from "Currency Rate window, that created in * organization and with "Currency type" as spot (If setting ere done on any other organization currency rate created in the respective organization will be consider for the calculation. 

5.  Once process get both "Multiply Rate" EUR to USD and GBP to USD, EUR to GBP will be calculated by using the following formula EUR to USD /GBP to USD (1.18/1.31 = 0.900763...) 

6. After the process will create two new records on "Currency Rate" window, as shown in below table: 

Case 2. When "From Date" and "To Date" are different for both currency 

We are getting currency rates from bank from EUR to USD and GBP to USD. However bank is not providing currency rate EUR to GBP. Assume bank provide the below rates. 

1. The user will do the setting on "Currency Rate window", as shown in first screenshot. 

2. Run "Calculate Cross Currency Rate" process. 

3. The process will check the setting on "Cross Rate Setting" window. 

4. Process will pick the "Multiply Rate" from "Currency Rate window, that created in * organization and with "Currency type" as spot (If setting ere done on any other organization currency rate created in the respective organization will be consider for the calculation. 

5.  Once process get both "Multiply Rate" EUR to USD and GBP to USD, EUR to GBP will be calculated by using the following formula EUR to USD /GBP to USD (1.18/1.31 = 0.900763...) 

6. After the process will create two new records on "Currency Rate" window, as shown in below table: 

Everything is the same in both cases except "To Date" 

Form Date will be set whichever "From Date" is greater in both records. 

To Date will be set whichever "To Date" is smaller in both records