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Definition: What is it?

Foreign exchange rates used to convert one currency to another.

What is it used for?

Usually a business will want to work in one main currency (eg GBP) but will allow transactions in other currencies (eg EUR, USD). These other currencies will need to converted to the main currency at some point in order to generate financial reports (eg Balance Sheet or P&L) or (and most importantly!) to adhere to legal tax regulations.

NOTE: Need to investigate some potential open points and options about this because

• The current screen doesnt allow you to specify when the exchange rate begins - the default is the current date
• Adding a new exchange rate for the same currency automatically expires the previous one
• A transaction that occurs on a specific day could use the specific rate but you may not know or input that rate until the following day
• If you hold an bank account in a currency that is not your main currency then that account needs to be re-valued at the end of each month using the Inland Revenue Department (IRD) specified conversion rate
• All transactions (eg Income) to the General Ledger in a foreign currency also need to use the IRD rate. The rate is not known until after the end of the month required for re-valuation - so may need some form of currency re-valuation process.???

What's on the screen?

TO DO : Add a screen shot

How do I add a new foreign exchange rate?

How do I update an existing foreign exchange rate?

How do I delete / expire a foreign exchange rate??