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Currency Exchange Rates

Currency exchange rates are set up and maintained at the enterprise level and apply to all sites in APM. To set up exchange rates, you must define currency combinations, for example, U.S. dollars to European euros, and the rate of exchange for each combination. When a new exchange rate is entered, it is automatically assigned the current date as its effective date and it becomes the current rate of exchange for that currency combination.

For more information, see Setting up Currency Combinations and Exchange Rates.

You can enter a new exchange rate for a currency combination as often as once per day, but not more than once in a day. The previously entered rate is automatically expired with an expiration date of the previous day. For example, if a new rate is entered on February 1, the previous rate’s expiration date is January 31. This ensures that there are no gaps in the currency’s exchange rates. You can view current and expired exchange rates on the Exchange Rate History tab in the enterprise’s Accounting view, Currencies tab. You can also delete expired rates, if you want.

For more information, see Adding Currency Exchange Rates and Deleting Exchange Rates.

The current rate for a currency combination cannot be deleted (it must first be replaced with a new current rate), and you cannot add a new rate more than once per day. However, you can edit the current exchange rate to correct an incorrect rate. The changed rate is used on any currency conversion performed after the change. Any transactions that used the incorrect rate have to be corrected using the available means associated with the object. For example, if a failure mode is copied to a site with a different currency, failure costs must be adjusted to reflect the corrected rate.

For more information, see Editing Current Exchange Rates.

How Exchange Rates Are Used

Currency exchange rates are used when assets or failure modes are copied to sites that use different currencies. Failure and downtime costs on failure modes and asset downtime costs are converted to the target currency using the exchange rate that is current on the date of the transfer.

The effective date of the business transaction determines the exchange rate that is used. For example, the rate in effect as of the date when a resource transaction is posted is used. For purchase orders, invoices, and resource demands, the rate in effect when the costs are calculated is used. In the case of a request for quotation, unless the exchange rate is defined on the RFQ, the rate in effect at the time the bids are analyzed is used.

Example

In this example, exchange rates are updated monthly, as follows:

•	January 1, CAD to USD: 0.85

•	February 1, CAD to USD: 0.87

•	March 1, CAD to USD: 0.88

The following table shows purchase receipts from a Canadian supplier to an American company.

#	Transaction Entered On	Transaction Effective Date	Exchange Rate Used	Description
1	Jan 15	Jan 3	0.85	The rate entered on Jan 1 is used
2	Jan 15	Dec 15	0.85	If the transaction’s effective date precedes the earliest exchange rate, the earliest rate is used.
3	Feb 15	Feb 10	0.87	The rate entered on Feb 1 is used.
4	Feb 15	Jan 30	.85	The rate in effect on the transaction’s effective date is used.
5	Mar 15	Mar 10	.88	The rate entered on Mar 1 is used.
6	Mar 15	Feb 28	.87	The rate entered on Feb 1 is used.