Exchange Rates

After you create a Currency Exchange Group, you must set currency transaction rules for the group:

• Identify the currencies to be converted from and to
• Specify the exchange rate
• Specify the date and time at which that rate become effective

Later, you may return and modify the Currency Exchange Group rules. In the Currency Exchange Group: Group Name Modify form:

1. Click [New] next to the group that you want to modify.

The Advanced Administration Application displays any rules and information for that currency group.

2. If necessary, change the Group Description.
3. Click:
• Disabled to disable the group, or
• Click again to de-activate Disabled and re-enable this group.
4. Click [New].
5. Click in the drop-down menu, and select the name of the currency which the Buying Organization will convert from.
6. Click in the drop-down menu, and select the name of the currency which the Buying Organization will convert into.
7. Edit the date when the conversion rate becomes effective.

Note: the Advanced Administration Application uses a Java filter in this text box which allows spaces before the date, but not after the date.

8. Click in the Conversion Rate text box, and type the conversion rate between the currencies.
9. Click in the Create Reciprocal Currency Exchange check box, to create exchange rates for both forward and backward conversion.
10. Click [Save].

The Advanced Administration Application re-displays the Currency Exchange Group: Group Name Modify form, with the new exchanges rate (or rates) added to the list.

11. Click [Insert] to the left of any rate, to add an additional exchange rate between the same 2 currencies.

Repeat steps 7, 8, 9 and 10.

12. Click [Save] to save the group.

Note: European Monetary Union law forbids direct conversion between EMU country currencies. They must be converted via the common currency the Euro.

In the Procurement application, you must establish one Currency Exchange Group to convert the from currency to Euro, and another to convert from Euro to the to currency.

For example, to convert from Lira to Euro, and then from Euro to Francs. The Procurement application automatically manages the implied Lira to Franc conversion.