Glossary

A

B

C

D

E

F

G

H

I

J

K

L

M

N

O

P

Q

R

S

T

U

V

W

X

Y

Z

 

 

B

Base Currency Exchange Rate

The exchange rate of a currency with respect to the base currency of the company, the other currency being a foreign currency.

Example: If the base currency of the company is INR and the transaction currency is USD, then the number of units of INR that make one unit of USD will be the base currency exchange rate.

 

 

 

 

 

 

 

 

 

 

 

 

 

C

Cross Currency Exchange Rate

The exchange rate of a currency with respect to another currency, which is not created directly, but derived based on the intermediate cross currency.

Example: A company needs payments to be made in “Swiss Francs” and the transaction currency is the “US Dollar”. If an exchange rate has not been defined for the conversion between “Swiss Franc” and “US Dollars” then an intermediate currency like the “Euro” can be used. The exchange rate would be calculated considering the exchange rate between the “US Dollar” – “Euro” and the “Euro” – “Swiss Franc”.

Currency Code

The code identifying the currency for which the exchange rate is defined. This currency must be an ISO currency.

 

 

 

 

 

 

 

 

 

 

 

 

E         

Exchange Rate

The number of units of a particular currency that can be exchanged to get one unit of another currency.  This exchange rate is usually taken from authentic data sources like “Bloomberg” or “Reuters”.

Exchange Rate Category

The sequence in which the exchange rate must be retrieved by the system for a selected combination of currencies.

There are two types of such sequences defined:

  • Sequence for Base Currency Exchange Rate Category – The sequence in which the exchange rate must be retrieved by the system between the foreign currencies with respect to the base currency of the company.

  • Sequence for Cross Currency Exchange Rate Category – The sequence in which the exchange rate must be retrieved by the system for a selected combination of currencies.

Exchange Rate Type

This is a unique code identifying the type of exchange rate. Exchange rate types can be:

  • Predefined exchange rate types: Buying rate and Selling Rate.

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

  • Selling rate – It is the market exchange rate used to receive payments in a foreign currency.

  • User-defined exchange rate types: User can define exchange rate types for various purposes. For Example, Hedge rate, Forward rate and so on.

 

 

 

 

 

 

 

 

 

 

F

Financial Period

A period of time for which financial statements are drawn. In Ramco Enterprise Series 4.0, it refers to the periods defined for a financial year.

Financial Year

A period of time for which account are finalized and financial statements are drawn. In Ramco Enterprise Series 4.0, it refers to the accounting year for which the financial period exists.

From Currency

The currency against which the To Currency is quoted for conversion.

Example, in case of conversion from INR to GBP (British Pound) then the From Currency of this transaction is INR.

 

 

 

 

 

 

 

 

 

 

I

Intermediate Cross Currency

A currency that acts as a median between two currencies when exchange rates have not been defined directly for them.

Example: If the exchange rate of the “GBP” (British Pound) to the “DEM” (Deutsche Marc) has not been defined the system will still retrieve the exchange rate for it if you have selected an intermediate cross currency. That is the system would check whether the exchange rate has been defined for the GBP and the intermediate currency similarly between the intermediate currency and the DEM. If it has been defined the system will calculate and retrieve the exchange rate accordingly.

An intermediate cross currency can be set for the company. The “US Dollars” and the “Euro” are two currencies that have been identified as intermediate cross currencies by this system.

 

 

 

 

 

 

 

 

 

 

 

N

Number of Units

The number of units of a From Currency would result in the one unit of the To Currency.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

T

To Currency

The currency to which the From Currency will be converted to and expressed.

Example, in case of conversion from INR to GBP (British Pound) then the To Currency of this transaction is GBP (British Pound).

Tolerance %

The percentage of variation in the exchange rates for a combination of currencies that is permitted during transactions.

Tolerance Limit

The absolute amount of variation in the exchange rates for a combination of currencies that is permitted during transactions.

 

 

 

 

 

 

 

 

 

 

V

Valid From Date

The date from which the exchange rate definition between two currencies is valid.