Current Exchange Rate Maintenance

This area is used to define the current exchange rates between your domestic currency and the currency specified on each row. Each value is always captured from the perspective of your domestic currency, meaning that you always assume that you are working with 1 unit of your domestic currency versus a fractional amount in the foreign currency.

For example, assume your domestic currency is the US dollar (USD) and that you have a vendor in Canada and that you pay that vendor is their currency (CAD). In this example, you would have a row in your screen for the CAD currency. You would edit the values of "Buying Rate" and "Bank Withdrawal Rate" to tell the system how many CAD = 1 USD. A simple way to state this would be: "$1 of my money purchases x CAD worth of goods."

As of the writing of this article, 1 USD is worth 1.0379 CAD, so 1.0379 is the value that would be entered on the CAD row in the screen. This tells the system that $1 buys 1.0379 worth of Canadian goods. If your vendor sells an item for 100 CAD, your cost on your purchase order would be $96.35.