<?xml version="1.0" encoding="utf-8"?>
<ManualTopic ID="/baanerp/tf/onlinemanual/cri000370" xml:lang="en">
   <Header>
      <Title>Currency exchange-rates</Title>
      <Keyword type="header" order="d1e2132382">
         <Level1>Currency exchange-rates</Level1>
         <Level2>exchange rates</Level2>
      </Keyword>
      <Keyword type="header" order="d1e2132387">
         <Level1>Exchange rates</Level1>
         <Level2>currency exchange</Level2>
      </Keyword>
      <Keyword type="keyw" order="d1e2132420">
         <Level1>standard currency system</Level1>
         <Level2>Currency exchange-rates</Level2>
      </Keyword>
      <Keyword type="keyw" order="d1e2132427">
         <Level1>single currency system</Level1>
         <Level2>Currency exchange-rates</Level2>
      </Keyword>
      <Keyword type="keyw" order="d1e2132434">
         <Level1>dependent multicurrency system</Level1>
         <Level2>Currency exchange-rates</Level2>
      </Keyword>
      <Keyword type="keyw" order="d1e2132450">
         <Level1>independent multicurrency system</Level1>
         <Level2>Currency exchange-rates</Level2>
      </Keyword>
   </Header>
   <GeneralSection>
      <Paragraph>The currency exchange-rate is the factor by which an amount in a
		different currency is multiplied to calculate the amount in the currency base.
		In a single or dependent currency system, the currency base always equals the
		reference currency. In an independent currency system, the currency base is one
		of the home currencies. In a standard currency system, the local currency is
		the default currency base; the other home currencies, and sometimes the
		reference currency can serve as currency base.</Paragraph>
      <Paragraph> 
         <Code>transaction currency amount * currency exchange-rate = currency base-amount</Code>
      </Paragraph>
   </GeneralSection>
   <GeneralSection>
      <SectionTitle>Rate factor</SectionTitle>
      <Paragraph>The rate factor (for example, 100 or 10,000) indicates how many
		units of a given currency are equal to one unit of the base currency multiplied
		by the currency rate.</Paragraph>
      <Paragraph>If the currency rate is expressed in the base currency, the
		amount in the currency to be converted is divided by the rate factor before the
		currency rate is applied. This option is useful for conversion to currencies
		with very small values, such as the Colombia peso.</Paragraph>
      <Paragraph>For example, instead of defining that COP 1 = 0.000346 EUR you
		can define that COP 10,000 = EUR 3.46 with the rate factor = 10,000.</Paragraph>
   </GeneralSection>
   <GeneralSection>
      <SectionTitle>Currency rate registration</SectionTitle>
      <Paragraph>Currency rate registration is different in dependent and
		independent multicurrency systems. This has an effect on the conversion rules
		for rates and rate factors, described in "Conversion Rules." This figures shows
		which rates are defined in single, dependent, and independent currency systems.</Paragraph>
      <Figure space-and-orientation="indented-estimated">
         <HTML:IMG xmlns:HTML="http://www.w3.org/TR/REC-html40" width="645" height="369"
                   SRC="../images/tr_chart_cri_curr_rate_in_systems.png"
                   alt="[...]"/>
      </Figure>
      <Figure space-and-orientation="indented-estimated">
         <HTML:IMG xmlns:HTML="http://www.w3.org/TR/REC-html40" width="316" height="326"
                   SRC="../images/tr_chart_cri_curr_rate_in_systems2.png"
                   alt="[...]"/>
      </Figure>
   </GeneralSection>
   <GeneralSection>
      <SectionTitle>Currency rates in a standard currency
		system</SectionTitle>
      <Paragraph>In a standard multicurrency system, currency rates must be
		defined between all foreign currencies and all home currencies of the financial
		companies of a group. Additionally, rates between the reference currency and
		the foreign currencies, and between the local and the reference currency, must
		be set up.</Paragraph>
   </GeneralSection>
   <GeneralSection>
      <SectionTitle>Currency rates in a single currency
		system</SectionTitle>
      <Paragraph>In a single currency system, the currency rates must be defined
		between the transaction currencies and the reference currency, which is the
		common local home currency for all companies.</Paragraph>
   </GeneralSection>
   <GeneralSection>
      <SectionTitle>Currency rates in a dependent multicurrency
		system</SectionTitle>
      <List>
         <ListIntro>In a dependent multicurrency system, these currency rates must
		  be defined:</ListIntro>
         <ListItem>The rates between the transaction currencies and the reference
		  currency, which is one of the home currencies in all financial companies.</ListItem>
         <ListItem>The rates between the reference currency and each of the other
		  home currencies.</ListItem>
      </List>
      <Paragraph>No rates are used between the transaction currency and the other
		home currencies. The other home currencies are only related to the reference
		currency and are therefore dependent on that currency.</Paragraph>
      <Paragraph>Transaction amounts are first converted into the reference
		currency and then from the reference currency into each of the other home
		currencies.</Paragraph>
   </GeneralSection>
   <GeneralSection>
      <SectionTitle>Currency rates in an independent multicurrency
		system</SectionTitle>
      <Paragraph>In an independent multicurrency system, the currency rates must
		be defined between the transaction currencies and each of the home currencies,
		including the reference currency. In an independent system, the reference
		currency equals the local currency.</Paragraph>
      <List>
         <ListIntro>Transaction amounts are converted into the reference currency
		  and also directly into each of the other home currencies.</ListIntro>
         <ListItem>In the amount calculations, no rates are used between the
		  reference currency and the other home currencies. The home currencies are all
		  related to the transaction currency and are therefore independent of each
		  other.</ListItem>
      </List>
   </GeneralSection>
</ManualTopic>