Currency Parameters Window

 

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.

 

This window lists currencies that have already been defined. It enables you to:

§   Enter, amend and delete currency details.

 

§   Define a currency as a 'master currency'.

 

§   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.

 

§   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.

 

§   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.

 

§   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.

 

§   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.

 

§   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.

 

§   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.

 

§   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.

 

§   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.

 

§   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

Þ Administration Parameters Menu.