Consolidated Ledger > Consolidation Processes > Set Up Consolidation Exchange Rates

The Currency Exchange Rate Maintenance function allows you to set up the currency exchange rates. You can set up as many currency exchange rates for a particular currency code record as may be needed by the company.

When you access the Currency Exchange Rate Maintenance function from inside the consolidation company that is accessible in the Consolidated Ledger module, it provides the ability to import into the consolidation company the exchange rates from any of its assigned subsidiary companies. You also have the option to update at any time prior to consolidation the currency exchange rates maintained in the consolidation company.

To set up the currency exchange rates for use in consolidation, perform the following steps:

1.Access the Currency Exchange Rate Maintenance function from the Currency group in the Maintenance menu. The Search screen is automatically displayed when this function is accessed.

2.In the Search field, enter the currency code or the currency code’s description that you want to set up with currency exchange rates. Alternatively, you may scroll up or down in the Search grid to locate the currency code; then, double-click the currency code to select.

Note: The currency code you selected in the grid will be displayed in the Transaction Currency field, for your reference. This will be considered as your base currency in setting up the currency exchange rates.

3.Click the List box button next to the Target Currency field and select the currency code for which you want to create a currency exchange rate.

4.Click the List box button beside the Exchange Rates Come From field, and choose the source company from which the currency exchange rates will be based. You may choose either of the following:

oConsolidation Company

If you select the consolidation company from the Exchange Rates From field, you will need to manually set up the exchange rates in this function. Proceed to step 5.

oOne of the Subsidiaries

If you chose one of the subsidiary companies from the Exchange Rates From field, you will import the currency exchange rates from that subsidiary. Proceed to step 6.

Note: The Exchange Rates Come From field is enabled only when the Currency Exchange Rate Maintenance function is accessed from a consolidation company.

5.If you chose the consolidation company in step 4, you will need to manually set up in the Daily Rates page the exchange rates and the effective date for each rate. To do this, perform these steps:

5.1. Click the Append row to end button to activate a new line in the grid to allow you to add a new exchange rate record.

5.2. In the Effective Date field accept or amend the default effective date of the exchange rate entry you are setting up. The default value in this field is the current system date. Note that you cannot edit the values in the Effective Date field once the currency exchange record is saved.

5.3. Enter in the Exchange Rate field the exchange rate applicable to the chosen target currency. The default value in this field is 0.

Note: AccountMate uses the 1 Unit of Transaction Currency = N Units of Target Currency exchange method.

Example: Assume that your transaction currency is in US dollars and that the chosen target currency is in Australian dollars. If 1 unit of US dollar is equivalent to 1.42555 Australian dollars, you should enter 1.42555 in the Exchange Rate field; however, if the chosen target currency is Japanese yen and 1 unit of US dollar is equivalent to 108.615 Japanese yen, you should enter 108.615 in the Exchange Rate field.

5.1. If you want to add other exchange rate entries, click the Append row to end button and enter the effective date and exchange rate in the applicable fields. You may enter as many exchange rate records as may be necessary. Note that AccountMate will not allow you to enter exchange rate entries having duplicate values in the Effective Date field.

6.If you chose one of the subsidiaries in step 4, you can update the daily rates by importing them from the source subsidiary. To do this, simply click the Update button to configure AccountMate to import the rates from the source subsidiary into the Daily Rates grid. The Daily Rates grid is disabled because all the information must come from the source subsidiary.

7.If you want to set up exchange rate for a different target currency, click the List box button in the Target Currency field and select another currency code; then, manually set up in the Daily Rates grid or import the applicable exchange rate(s) and the effective date(s).

8.Access the Annual Rates page and review the currency exchange annual rates records that exist for the chosen consolidation company’s transaction currency-target currency relationship. AccountMate automatically calculates the average and closing rates based upon the daily rates available in the Daily Rates grid; this, the following information in the Annual Rates page are for reference use only:

oFiscal Year

The fiscal year information comes from the consolidation company’s number of fiscal years maintained in AccountMate.

oAverage Rate

The average rate is the weighted average if multiple exchange rate records exist for the chosen transaction currency-target currency relationship in a fiscal year.

oClosing Rate

The closing exchange rate and closing inverse rate for each fiscal year are the exchange rate and inverse rate with an Effective Date equal to that fiscal year’s End Date of the Effective Date closest to but not later than the End Date.

Note: The Annual Rates Page is accessible only when the Currency Exchange Rate function is accessed from a consolidation company.

9.Once you have set up all the exchange rates for the currency code(s), click the Save button in the Maintenance toolbar to save your changes; otherwise, click the Cancel button.

Set Up Consolidation Exchange Rates

Set Up Consolidation Exchange Rates

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