Direct Exchanges

Each time a transaction is posted, its value is stored in the transaction currency and in multiple other currencies, used for billing, reporting, and other business needs. When the transaction currency is different from the other currencies, a direct currency exchange must take place.

Usually, a transaction is recorded at the daily exchange rate that was in effect on the date on which the transaction took place, unless an override is specified.

Exchange Rate Setup

The Multicurrency feature lets you set up an exchange rate table for the currencies that your company uses regularly. Each line of the table lists:

• The "from" currency and "to" currency.
• The date to which the exchange rate applies.
• The exchange rate, to six decimal places.

Most companies update their exchange rate table at least once a month, but it can be updated as frequently as daily.

If a Direct Exchange is Not Possible

When a direct exchange is not possible, DPS uses an inverse exchange or calculates the exchange through triangulation.