Using Currency Spot Rates

A spot rate is the exchange rate of one currency for another at a particular point in time. For example, one U.S. Dollar, on a particular day, is worth 124 Japanese Yen. The spot rate of a currency may change at any given point in time, which causes transactions conducted in that currency to change in value. For an organization to properly value its financial accounts, it is important to know the value of the transaction based on the most current spot rate value.

Aptify provides the functionality to track currency spot rates and to associate those spot rates with transactions. The Currency Spot Rates service tracks the value of the foreign currency against a base currency. By associating the spot rates with foreign transactions, the gain or loss from a transaction can be calculated at any period in time. Currency spot rates are associated with transactions automatically when the system creates an Order Currency Spot Rates record which links a specific Currency Spot Rates record to the transaction. Also, the system uses Currency Spot Rates to calculate a foreign currency equivalent to a payment line's Amount when applying a payment in a currency that is different from the currency on its corresponding order.

This topic is discussed in the following sub-topics:

• Creating Currency Spot Rates
• Configuring the Quotation Tolerance Interval
• Using the Mark-To-Market Wizard
• About Cross Rates
• About the Quotation Tolerance Interval
• Understanding Currency Spot Rates