How to use the Rate Variance Option in the Multicurrency Exchange Rate Table Setup Window


TechKnowledge Content


Question:

I am trying to use the Rate Variance option in the Multicurrency Exchange Table Setup window but the system allows me to enter any exchange rate exceeding my rate variance. Are there any additional setup options that I missed? How does this feature work?



Answer:

The system will consider the Rate Variance options if in the Multicurrency Setup window (Setup>Financial>Multicurrency) the option to allow Override Rate Variance is NOT marked.

In this window you can also specify a password allowing you to continue with an exchange rate if a rate has exceeded the rate variance.

If Allow Override Variance is NOT marked what will be checked?

If the option to Override Rate Variances is marked, no checking of rate variances in the Multicurrency Exchange Rate Table Setup is performed.

In the Multicurrency Exchange Rate Maintenance window the system checks when

• inserting a new exchange rate
• modifying an existing rate


     
The system will also check using exchange rates on-the-fly (need to have Use Rates Without Adding to Table marked in the Multicurrency Setup window).

If exceeded the user will receive a warning that the rate variance has been exceeded and that rate will not be allowed. If you have specified a password, a window to enter the password will open and after verifying the password you can continue.

Which value will be used to determine if the rate variance has been exceeded?

A comparison of a new rate is made to the most recent rate relative to the date of the new rate. For instance, if the new rate is dated 5/19/2001 and the closest prior rate is dated 12/18/2001, it will compare to that rate. If there are two rates entered for 12/18/2001, we will compare to the rate with the latest time.

For example, the rate variance is set to 1.000000.

There are 2 existing rates in the table:

Date Time Exchange Rate

05/18/2001 1:50:52 PM 1.685000

05/18/2001 2:08:01 PM 1.687000

Enter a new exchange rate of 2.684000. The system will allow you to insert this new rate.

Remove the 1.684000 rate and try to insert a rate with 2.686000, the system will return a message that “You cannot override the rate variance”. The system will use the rate entered at 1:50:52 , 1.685000 to compare the new rate.



This article was TechKnowledge Document ID: 21895

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