Exchange Rate Types and their usages

Document ID : KB000024499
Last Modified Date : 28/08/2018
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Introduction:

CA PPM has three exchange rate types: 'Average', 'Fixed' and 'Spot', and the various areas of the application where Multi Currency is being used. This article further explains where the types are used within the application.

 

Instructions:

When the application is enabled for Multi-Currency, the Financial Administrator can activate currency codes and define conversion rates using 3 Foreign Exchange Rate Types.  The data is entered directly into the application UI by the Finance Administrator.  Creating and updating Exchange Rates through XOG is not currently a functionality that is available.

CA PPM distinguishes the 'types' as the "stability period" of a Foreign Exchange Rate: 

  • Average: This is a blended derived rate over a period of time, usually weekly or monthly.  
  • Fixed: This is a fixed rate that does not change over a period of time. 
  • Spot: This is the variable rate that changes over the course of the day. 

The system MUST have current, valid 'Average' Foreign Exchange Rates defined for specific areas of the application to function.  Optionally, the Financial Administrator can define rates for 'Fixed' or 'Spot'.

Exchange Rate Types are being used in some of these areas of the application.  

  • Financial Portlets
     
    • Applies ALWAYS the Exchange Rate Type = Average
       
  • Stock Financial Reports (i.e. Budget Forecast Analysis)
     
    • Applies ALWAYS the Exchange Rate Type = Average
       
  • Cost Plans (Billing View)
     
    • Exchange Rate Type used is based on the 'type' defined in the Financial Settings page 
       
  • Transactions
     
    • Exchange Rate Type used is based on the 'type' defined in the Financial Settings page or in Financial default system settings for Transactions
       
  • Simple Budget page
    If there is no detailed cost plan, the user can modify the currency code. When this occurs, the application will always use the Exchange Rate Type = Average, so you make sure you have conversion rate setup for Average.
     
    • For example, default system currency is GBP, Simple budget page has currency code = GBP too. The user wants to change the currency code to USD for this project, then the user has to make sure there is an conversion rate FROM USD TO GBP for 'Average' type.

 

 

Additional Information:

Reference kb000025905 : How to change from a Single Currency Setup to a Multi-Currency setup

Reference kb000018733 : How does PPM manage a list of data with different currency codes?

Also have a look to the following communities thread

https://communities.ca.com/thread/241731157