FX-Rate Configuration:
Base Currency is the currency that is configured in the “Accounting” under the “System Default” for the CorpID.
Margin% comes in handy considering the exchange rate may change quite a number of times within a day, so if you want to give a plus minus margin in exchange rate calculation, you can set the Currency Margin field in "Accounting" under the "System Default".
FX Rate process:
In Redsky FX-Rate/Exchange Conversion is updated using the “XE: Currency Exchange Rate” API according to the Base Currency setup for each CorpID (Companies using Redsky) and list of currencies setup in Parameter = CURRENCY. The exchange rates are updated in Redsky under "Administration >> Exchange Rate".
Below is how details page looks like -
In this example 'USD' is the base currency and for the currency 'EUR' the exchange rates details got updated here.
Official Rate is showing that 1 USD is 1.0173 EUR
Base Currency Rate is same as Official Rate as the Margin % is 0
Currency Base Rate is showing that 1 EUR is 0.9830 USD
On accountline based on the Base Currency selected, Exchange Rate gets populated as Base Currency Rate value.
If the Margin% is not zero:
In this example 'USD' is the base currency, margin% is 3 and for the currency 'EUR' the exchange rates details got updated as :
Official Rate is showing that 1 USD is 1.0173 EUR
Base Currency Rate = Official Rate - (Official Rate * Margin%)
= 1.0173 - (1.0173 * 3%)
= 0.9868
Currency Base Rate = 1 / Base Currency Rate
= 1 / .9868
= 1.0134
Manual Update feature:
This comes in handy in scenarios where you want to set the exchange rate manually and don't want that data to get updated through “XE: Currency Exchange Rate” API. For this to happen, you have to set the manual update as Yes. Once the system identifies that manual update is set as Yes, the Exchange Rate API will not update the rates for this currency for that day.
Frequency of the EX-Rate Conversion:
We have created the service for FX-Rate Conversion which runs every day from Monday to Friday and updates the old exchange rate with the new rates between 10 a.m. to 11 a.m. IST (12:30 a.m. - 1:30 a.m. EST).
FX-Rate Update on Account Line:
RedSky allows you to update FX rates for any particular account lines for either Entitlement / Estimate / Revision or Actuals depending on what you have selected. Update or create a new account line updates the FX rates as per the FX rates settings in your FX rates table.
Redsky also allows you to update the FX rates for multiple lines from one place using the “Fx Update”. The FX rates are updated as per the FX rates settings in your FX rates table. Multiple currencies can be updated at the same time. Select those lines that you would like to have updated then click on “Fx Update” which will update the FX rates for selected lines for either Entitlement / Estimate / Revision or Actuals depending on what you have selected.