Understanding Exchange Rate Identifiers

If you incur expenses in a currency that is different from the currency in which you are reimbursed, you must set up exchange rate identifiers for the system to locate the appropriate exchange rate to use. The exchange rate might vary depending on the method of payment that you used when you incurred the expense. For example, if you charged expenses on an American Express credit card, the exchange rate that American Express uses to convert the currency might be different from the exchange rate that your company uses to reimburse you.

You specify the record in the exchange rate table that you want the system to use by entering an address book number for the identifier and setting up an exchange rate for that address number. If you need to set up exchange rates for specific address book numbers after you set up exchange rate identifiers, select Exchange Rate from the Form menu.

The system searches for the currency conversion based on the address book number that you entered. If you do not want to differentiate exchange rates by payment method, you can omit the address book number and set up a default exchange rate identifier that is not associated with an address book number.

Regardless of whether you set up exchange rates by address book, you must enter an exchange rate identifier in the group profile; therefore, you must set up at least one exchange rate identifier to use a default in the group profile. The system retrieves the appropriate exchange rates based on the value assigned. As employees enter expenses on their expense reports, the system converts the expense amount to the employee's reimbursement currency.

The system stores exchange rates in the Currency Exchange Rates table (F0015) and exchange rate identifiers in the Exchange Rate Identifiers table (F09E114).