Foreign Exchange Rate Schedule

Overview

The Foreign Exchange Rate Schedule program is used to enter, maintain, and view foreign exchange rate history. It is used by companies that use Rootstock Financials and do business in multiple currencies. It is expected that companies that do business in multiple currencies but do not use Rootstock Financials will instead use the equivalent program in the financial package of their choice.

Prerequisites 
 

Company Master:  In the Currency Exchange Rate Source field, check Use Rootstock Currency Master.

Currency Master:  All currencies used in Exchange Rate Schedules must be defined in the Currency Master.

  NOTE  The Current Exchange Rate field on the Currency Master is for companies that don't use Rootstock Financials and, therefore, do not use the Foreign Exchange Rate Schedule program. 

Financial Company Master:  The Foreign Exchange Rate Schedule Indicator and the Multi-Currency Indicator fields must be checked.

Navigation

Multiple Currency > Foreign Exchange Rate Schedule

Definitions
 

A Foreign Exchange Rate Schedule is a single record in the SYFOREXSCHEDNO object that

• For a specified Financial Company,

• Records one particular type (see below) of the exchange rate.

• Between two currencies defined in the Currency Master.

• That is/was/will be in effect on one date or between a range of dates. 

A type of exchange rate, or Schedule Type, is one of

• Current Spot Rate:  The rate that applies in the ordinary course of commercial transactions. The exchange rates used for the following Rootstock transactions are Current Spot Rates:

  • Inventory Receipts

  • Accounts Payable Invoices, when booked

  • Accounts Payable Invoices, when paid

  • Sales Order Invoices, when booked to Accounts Receivable 

  • Accounts Receivable Invoices, when paid

• Month End Spot Rate:  A rate that pertains to two kinds of a company's internal financial transactions:

  • The Month End Spot Rate is used for Unrealized Foreign Exchange (UFX) transactions.

  • The Month End Spot Rate is the Balance Sheet Rate for translating a subsidiary company's accounts into its parent company's currency during consolidation.

• Budget Rate:  An optional type of rate that may be useful to consolidated companies that use budget data in their financial reporting, Budget Rates are the exchange rates a company expects to see during a budget period. They matter only when

  • The user company uses the Financial Report Writer to produce reports that contain budget data and

  • The user company's accounts, including its budget data, are translated into a parent company's currency for consolidation.

  • Even then, the user company would set up Budget Rates only if its parent company wished to produce reports showing the user company's budget data.

• Locked-In Commitment Rate:  This type of rate is used as an override to the Current Spot Rate.

• Override Rate:  This type of rate is used as an override to the Current Spot Rate.

Processing

From the list view, a user can select to add a new record using the button "New Foreign Schedule Rate Number" or Edit or Delete an already existing exchange rate schedule. 

  NOTE  If a Foreign Exchange Rate Schedule has been used in one or more transactions, then no Edit or Delete is allowed. The user can only inactivate (or reactivate) such records. See Fields > Schedule is Inactive, below.

Fields
 

Company:  The Financial Company for which the schedule applies.

Exchange Rate Schedule:  This is a unique number auto-assigned by the system.

Description:  User-defined meaningful description, up to 100 characters in length.

Schedule Type:  Foreign Exchange Rate Schedule Type.  See Definitions above.

Currency To Be Calculated / To Currency and Known Value Currency / From Currency:  These lookup two Currency Master records. When performing a currency translation, we always know the value in one currency, which we call the Known Value Currency / From Currency. The value we wish to know is the value in the other currency, which we call the Currency To Be Calculated / To Currency.

Exchange Rate:  The rate of exchange. The Known Value Currency / From Currency multiplied by Exchange Rate will give us the value in Currency To Be Calculated / To Currency.

Reciprocal of Exchange Rate:  (Not shown on the UI.) Automatically set to one divided by Exchange Rate, The value in Known Value Currency / From Currency divided by Reciprocal of Exchange Rate will give us the value in Currency To Be Calculated / To Currency.

Explanation:  This field is an automatically generated text explanation of the exchange rate value between two currencies, constructed as follows:

• "1 ", +

• The Known Value Currency / From Currency, +

• "equals", +

• Exchange Rate, +

• The Currency To Be Calculated / To Currency.

From Date:  The starting effective date for this exchange rate schedule, before which this exchange rate schedule will not apply.

Thru Date:  The ending effective date for this exchange rate schedule, after which this record will no longer apply. For Current Spot Rate Schedules, the user may edit the Thru Date field to a value greater than its current value if the new value does not overlap with an existing schedule for these same currencies.

  IMPORTANT  For active schedules (see Schedule is Inactive, below), the time from From Date through Thru Date cannot overlap with the time span of another active Foreign Exchange Rate Schedule having the same Schedule Type and Currencies.

Schedule is Inactive:  Checkbox which is used to deactivate a foreign exchange rate schedule record. Until a schedule has been used in a transaction, it can be deleted or changed, but once it has been used in a transaction, it is part of the accounting audit trail and cannot be altered. If it needs to be corrected for future transactions, this checkbox can be checked, and a new, corrected schedule can then be entered.

SEE ALSO
 

Company Master
Financial Company Master
Currency Master 
FYDATA - FXATO