1. Multicurrency Processing Implementation Guide
  2. Understanding Exchange Rates

Understanding Exchange Rates

As part of working with multiple currencies, ensure that the transactions that you enter are based on the most current exchange rates as quoted in the international financial market. The exchange rates that you set up provide a default rate when you enter a transaction. Additionally, exchange rates are used to:

  • Calculate realized gains and losses on foreign and alternate currency receipts and payments.

  • Calculate unrealized gains and losses on open foreign currency invoices and vouchers.

  • Revalue open transactions for monetary bank accounts.

This is an example of an exchange rate from USD to EUR, as quoted by an international currency site on the web.

1 U.S. dollar (USD) = 1.00334 euro (EUR)

1 EUR = 0.99667 USD

Notice that the inverse (reciprocal) rate from EUR to USD is also quoted.

When you initially set up the JD Edwards EnterpriseOne system for multicurrency processing, you set up exchange rates between the currency of a company (the from currency) with whom you do business and the domestic currency (the to currency). Throughout the JD Edwards EnterpriseOne Multicurrency Processing system, the from currency refers to the foreign currency and the to currency refers to the domestic currency.

Unlike other setup tasks, setting up exchange rates is a recurring task. After the initial exchange rate setup, you must update currency exchange rates on a regular basis to provide a default rate for transactions and for realized and unrealized gains and losses. After the initial setup, you can continue to set up exchange rates using the Currency Exchange Rate Entry program (P0015A). Or, if you have a large volume of exchange rates to set up at one time, consider using the Currency Exchange Rates Speed Revisions program (P11154) or the External Exchange Rate Processor program (R0015Z1). The system stores exchange rates in the Currency Exchange Rates table (F0015).