Creating an Exchange Rate Set

FlexNet Manager Suite 2021 R1 (On-Premises)

Each set of exchange rates covers every currency active in your enterprise, specifying a conversion rate for each of them against one that you have selected as the reference rate. Each set also has a date when it comes into effect, superseding any previous sets for new transactions. (Naturally, if you previously linked an old transaction to a then-current exchange rate set, that connection is preserved, so that older records are not automatically affected by the addition of a new exchange rate set.)

As soon as you activate the second currency for your enterprise, there is a default "Standard Rate" exposed, which defines relationships between every currency in use (and the Standard Rate is updated each time a new currency is activated). The Standard Rate is used whenever no other exchange rate applies. It also lists every currency active in your enterprise, together with any currencies you have since retired. You can supersede (or override) the Standard Rate by creating new exchange rate sets, each with an effective start date. Each new exchange rate set automatically includes all the currencies that are active at the time they are created (but retired currencies are not included).

Important: By default, no more than 90 locally-produced exchange rate sets can be listed in the web interface. This means that, if you already have your most recent set and 89 previous ones displayed, and you now create a new exchange rate set, the oldest one is automatically removed from view. (For notes about changing that default number, see Exchange Rates.) However, old (hidden) exchange rate sets are preserved in the compliance database where they continue to manage currencies for linked old transactions. (If your 90 existing exchange rate sets include any that are not in use, and therefore display an active trash can icon in the Exchange Rates tab, you may wish to consider deleting one or more of these before adding your new set, so that your collection of the 90 most recent sets remains as useful as possible.)

Use this process to specify a new exchange rate set for all your currently-active currencies.

To create a set of exchange rates:

1. Navigate to the system menu ( in the top right corner), click System Defaults, and select the Exchange Rates tab.
   This tab lists the recently-created sets of exchange rates (each covering the currencies in use when they were created). As soon as you activate your second currency, the Standard Rate is made visible. As noted above, the listing only displays exchange rate sets created in a rolling time window that defaults to the 90 days up to today.
2. Do either of the following:
   • If your new exchange rate set is closely related to an existing one, find the model one in the list, and click its copy icon (toward the right-hand end).
   • To start with a fresh set, click Create an exchange rate set.

   The appearance of the Exchange Rates tab changes to display the Create an Exchange Rate Set settings. (If you used the copy method, exchange rate values are the same as the model one.)

3. Complete the following fields for your set of exchange rates:

   Date

   Type (or use the down arrow to choose) the effective start date for this exchange rate set.

   Note: You cannot have more than one exchange rate set that start on the same date.

   Description

   Identify this set of exchange rates usefully: this text appears in the list of exchange rate sets.

   Reference currency

   The base for conversion rates with all the other currencies that are to be listed in this set. (This affects only this set, and not any other sets you define.) This value defaults to the reference currency you used for your previous exchange rate set (or the system default for the first one), but you may use the pull-down to choose a different one of the currencies active in your enterprise.
4. In the list of active currencies, edit the exchange rate values for each non-reference currency, as at the effective date for this set. For each of these currencies, enter the amount of reference currency that one unit would buy. For example, with a reference currency of USD, in the line for AUD, you could enter the exchange rate of 0.84. This means that AU$1 is (on the effective date) worth US$0.84.
   Tip: You cannot change the exchange rate of the reference currency, which must remain at 1.0 in relation to itself.

   Take care that you enter the ratio of reference currency to active currency the correct way round. The ratio is always reference/active. Money markets may not quote their exchange rates in this same way. Consider these two examples:

   Reference currency	Active currency	Market quote	Exchange rate column entry
   Yen	Euro	165 Yen to 1 Euro	165/1 = 165
   US dollar	Australian dollar	AU$1.14 to US$1	1/1.14 = 0.84

5. Click Save.
   The appearance of the tab switches back to show the list of available sets of exchange rates, including your most recent change.