Create Exchange Rate Type – A summary of the activity

In the current global environment, most organizations are engaged in multi-currency transactions on a day to day basis. The location of its branches, subsidiaries, suppliers or customers in different parts of the globe could substantiate this need. Exchange Rates of the various currencies are required for the respective financial books.

By Exchange Rate we mean the number of currency units of a country that can be exchanged to get one unit of another country’s currency.

These Exchange Rates are used for different transactions. Based on the transactions for which they are used these exchange rates are also classified into different Types.

The following two exchange rate types have already been defined in the system.

•  Buying Rate – is the market exchange rate to make payments.

• Selling Rate – is the market exchange rate to receive payment in foreign currency.

This page allows you to define exchange rate types according to the business requirements. You can enter a unique identifier for the type along with the description. The system stores the login ID of the user and the system date along with the newly created exchange rate type.