Exchange Rate – An overview

Introduction

In an era of increased globalization, where customers, suppliers and transactions span across countries, dealing with multiple currencies has become a practice for many business entities. This raises a need to define exchange rates for various currencies. Exchange Rate means the number of currency units of a country that can be exchanged to get one unit of another country’s currency. These Exchange Rates are used for different transactions. Based on the transactions for which they are used these exchange rates are also classified into different Types.

Feature Highlights

• Provision to define exchange rate types according to the business requirements.

• Two rate types, Buying Rate (the market exchange rate to make payments) and Selling Rate (the market exchange rate to receive payment in foreign currency) are already defined by the system.

• Facility to upload the exchange rate for various currency combinations from authentic data sources like “Reuters” or “Bloomberg”. The exchange rate values can be uploaded on a daily basis.

• The system calculates and stores the inverse exchange rates of the currency combination also.

• The set function defaults activity allows the user to set the intermediate cross currency, the default exchange rate type and the type of currency to be used in business transactions across scomponents.

• The order for retrieving the exchange rates for a given currency combination can also be set. Exchange rates are retrieved between two different currencies or a currency with respect to the base currency of company.

List of Activities