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This window appears when you select Currency Parameters from the Administration Parameters Window |
Purpose |
Currency Parameters provide the currency codes, descriptions, symbols, exchange rates and conversion protocols used to manage multi-currency operations throughout Global 3000. |
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This window lists currencies that have already been defined. It enables you to: § Enter, amend and delete currency details. |
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§ Define a currency as a 'master currency'. |
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§ Select a currency to enter and amend its exchange rates. |
Master currencies |
The essential features of a master currency are: § It has sub-currencies associated with it. |
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§ The exchange rates between the master and each sub-currency are fixed at any one time. These exchange rates can be given start and expiry dates. This feature enables new fixed rates to be defined. |
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§ Global 3000 does not allow the exchange rate between a master currency and any of its sub-currencies to be overridden at any time by a spot rate†. |
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§ While a currency is defined as a sub-currency, all conversions between it and any other currency are made via the master currency. Therefore the only exchange rate that can apply to a sub-currency at any one time, is the rate between itself and its master currency. |
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§ As a result, to convert monetary values from a sub-currency to a currency other than its master, Global 3000 always converts the sub-currency value to its equivalent value in the master currency, and then converts the value in master currency to the required currency. |
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§ All currency conversions in Global 3000 which involve a master currency hold the intermediate values to six decimal places*. Rounding only takes place when the value in the currency being converted to, is established. The rounding takes account of the decimal precision of that currency. |
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§ The exchange rates between a master currency and its sub-currencies, are always held as the amount by which the master currency is multiplied to give the sub-currency. They are never held as the amount the sub-currency is multiplied by to give the master currency. |
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§ A master currency cannot be a sub-currency of another master currency. |
† |
Global 3000 does allow you to enter a one-off cross rate between a sub-currency and another independent currency for a specific transaction. When you do this, Global 3000 respects the fixed rate between the sub-currency and the master currency, and derives a spot rate for the variable rate between the independent currency and the master currency. |
* |
When converting values of 1000 billion (US) and more in General Ledger and Project Ledger, Global 3000 can only maintain three places of precision. |
Note |
If you are operating a single-currency system you must define the code and description of your operating currency. |
The prompts for each currency are:
Code |
Enter a code of up to three characters. |
Note |
For recommended codes for EC currencies, see the Installation and Setup manual. |
Description |
Enter a description of up to 20 characters. |
Symbol |
Enter the currency's symbol (e.g. $) for use in reports etc. |
Master |
(Y/N.) Enter Y to indicate that this currency is a master currency. Enter N to indicate that this is not a master currency. |
Warning |
Once this indicator is set to Y for a currency, it cannot be changed. |
Further information |
For further information about master currencies, see Master currencies above. |
Decimals |
This prompt controls the 'decimal precision' of the currency. Enter one of the following: § 2 for currencies which are maintained with two decimal places; e.g. the UK pound. |
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§ 1 for currencies which are maintained with one decimal place; e.g. the Portuguese escudo. Values in a currency with a decimal precision of one, appear on the screen and in reports with two decimal places, the second of which is set to zero. When you are prompted for a value in the currency, you can enter a value with one decimal place, or with two decimal places if the second is set to zero. You cannot enter a non-zero value in the second decimal place. |
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§ 0 for currencies which do not have sub-units; e.g. the Italian lire. Values in a currency with zero decimal precision appear on the screen and in reports with two decimal places set to zero. When you are prompted for a value in the currency, you can enter a value with no decimal places, or with the decimal places set to zero. You cannot enter non-zero decimal places. |
Note |
Reducing the decimal precision of a currency does not affect values in that currency already held on file. These values continue through the system, processed at their original precision. |
On completion |
If you are adding a new entry: § If there are multiple exchange rate tables Þ Exchange Rates From Window. § Otherwise Þ Exchange Rates Maintenance Window. Otherwise Þ Next line in window. |
On exit |