Currency conversion problem

Document ID : KB000097908
Last Modified Date : 03/10/2018
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Issue:
Exchange rate values can appear to be different to those specified in the Accounting configuration settings in CA Service Catalog 14.1.05.

To reproduce with the example of Swedish Krona:

1) Set the top-level unit with currency USD.
2) Create a tenant with currency SEK.
3) Create a service in the top-level provider with a non-zero Rate item, e.g. $100.
4) Go to Accounting > Configuration > Exchange Rates and set the value of USD to something other than 1; for example 10.
5) Verify that the service as viewed in the provider BU still shows as $100.
6) See that in the tenant, the cost is not 100*10, but just Kr100. Therefore the wrong cost will be charged.
 
Cause:
While rates can be set to anything for each currency, the system should be normalised with US Dollars (USD) set to 1.0 and others compared to that.
Resolution:

Set the values in relation to US Dollars, rather than any other currency. So in our example,leave USD at 1.0, and set SEK to 0.1.

This is specified in the documentation:

All exchange rates are relative to the US dollar. When you convert from one currency type to another, the system first converts the catalog amount to US dollars. Next, the system converts the amount to the currency type of the account.

 

Additional Information:
https://docops.ca.com/ca-service-management/14-1/en/using/service-accounting/manage-exchange-rates