Contents of the Manage Currency Status Screen
Use the fields and options to configure the Manage Currency Status screen.
Identification
| Field | Description |
|---|---|
| Currency |
Enter, or click
|
to select, the three-character currency code for the currency, or use Lookup to select the currency. The only currencies available in Lookup are those set up on the Manage Currencies screen.
Life Cycle
Currency Status
| Field | Description |
|---|---|
| Activation Date |
Enter, or click
|
| Expiration Date |
Enter, or click
|
to select, the date on which you will begin entering transactions in this currency. This field is optional.
Life Cycle
Euro Currency Status
| Field | Description |
|---|---|
| Converting to Euro Currency |
Select this check box if the currency will be absorbed into the euro. When you select this check box, it activates the following fields: Activation Date, Expiration Date, and Euro-to-Currency Exchange Rate. |
| Activation Date |
Enter, or click
The system compares this date with the starting date for daily rates (on the Manage Daily Exchange Rates screen) and the period start date for period rates (on the Manage Period Exchange Rates screen). If the activation date is after those dates, only then can you save the dates entered on the Manage Exchange Rates by Date, Manage Exchange Rates by Period, Manage Period Exchange Rates, and Manage Daily Exchange Rates screens. |
| Expiration Date |
Enter, or click
|
| Euro-to-Currency Exchange Rate |
Enter the rate that will be multiplied by the currency's value to achieve the euro rate. For currencies that will be absorbed into the euro, the currency-to-euro exchange rate is determined by an average of the closing rates at year-end 1998. |
Triangulation
Triangulation is a method of creating an exchange rate between two currencies, using a third common rate, when no direct exchange rate (relationship) exists. For those currencies change to the euro, you must always use the euro to establish a rate between it and any other currency.
Example:
If one unit of your functional currency is equal to .6 of the currency selected on this screen and if the euro is equal to .8 of your functional currency, the currency-to-euro exchange rate would be 1.334 (.8/.6)
| 1 | = | One unit, functional currency |
| .6 | = | One selected currency unit in relation to the functional currency
(1 functional currency unit = .6 unit of the selected currency) |
| .8 | = | One Euro unit in relation to the functional currency
(1 functional currency = .8 unit of the euro) |
Therefore, the relationship between the selected currency and the euro is 1.334 (functional currency .6 x 1.334 = .8, the euro).