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Reverse exchange rates and change the base currency

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The following describes how to prepare a company for the use of the Triangulation and non Inversed exchange rate concept by changing the base currency to EUR and the Reversed rate flag to YES.

Caution: This routine should not be run until the exchange rates have been fixed for the currencies within the EMU.

See Reverse exchange rates and Change the base currency for further information about the routine.

  1. Select the Change base currency and/or reverse exchange rates menu item.
  2. You access the Currency conversion panel. The following fields are applicable:
    3. New currency flag
    Set this field to YES.
    New base currency
    Enter EUR, i.e. the currency code for the new case currency.

    Click OK.

  3. You access the Currency conversion panel once again with additional information for you to complete. You should now enter the relationship, i.e. the conversion factor between the old base currency and the new:
    4. 1 BEF = _______________________ EUR
    Enter the conversion factor between the new and old base currencies as:

    1 old base currency is equal to x new base currencies

    You may leave this field blank and enter the relation in the field below instead.

    1 EUR = _______________________ BEF
    Enter the conversion factor between the new and old base currencies as:

    1 new base currency is equal to x old base currencies

    If you follow the calculation example in the previous task, then you would enter 39.19254 here. You may leave this field blank and enter the relation in the field above instead. This is, thus, the type of conversion factor applicable for EMU installations.

    Caution: It is mandatory to enter a value in one of the two fields described above.

    Click OK when you have made the selections. When the conversion run has completed the system will inform you by sending the following message: “Job TRIANGLE completed normally“.

  4. Review and maintain the currencies in Work with currencies, if applicable. Set the EMU currency field to YES for all currencies that are a part of the EMU and therefore also are eligible for fixed exchange rates.
  5. Review and maintain the exchange rates in the Exchange rate table. The following currencies should be expressed with a fixed exchange rate: (See Enter fixed exchange rates for further information.)
    • The System currency. Note: If the system currency is the same as the base currency the exchange rate for the system currency should be entered as 1.0000000.
    • The Reporting currency
    • All currencies with the EMU currency field set to YES in Work with currencies.

Note: The system always requires a fixed exchange rate for the above stated currencies. If a fluctuating exchange rate anyhow is defined, then the system will ignore this. Therefore, the prior defined exchange rates may exist in the Exchange rate table but can, if desired, be deleted.

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