The Default Rate Types are used to set defaults to Forex Rate Type field when creating multi-currency transactions.

Example:

  1. Vendor is set with currency other than functional currency (USD). In this example, INR is setup for this Vendor.
  2. When you create any inventory transaction, in this example, Inventory Receipt,
    1. As Vendor is selected, Currency field will automatically show the Currency setup for the vendor. You can opt to modify it if necessary.
    2. When item is selected, 

      3. Currency Unit field will automatically show the currency from the header > Currency field. You can opt to modify it with any sub-currency if necessary.
        1. Sub-currency setup should be setup as follows. 
          1. Note that only sub-currency of the Currency selected in the header part of the Inventory Receipt screen will be available in the Currency Unit combo box in the Items grid. 
          2. if INR has sub-currency setup from Currency field, it should should be available. 
          3. if INR does not have sub-currency setup, then it will make Currency Unit field read-only.
          4. In this example, INR does not have sub-currency setup, therefore the Currency Unit field is shown as read-only.
          5. Sub-currency will be discussed in other topics. Refer to these topics: How Sub-currency is setup, How Sub-currency works.
      4. Cost will show in INR converted value. The cost is computed based on Item's Last Cost divided by Forex Rate.
        1. Item's Last Cost
        2. Forex Rate of 0.015678
        3. Here's how it is computed:
          Last Cost / Forex Rate = Cost
          10.00 / 0.015678 = 637.836459



 

 

 

 

 

 

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