For example, Daily, Monthly, Weekly. The user enters a rate, normally from a predefined list depending on what function they are performing in the system. Some foreign exchange on purchase order examples are:
▪Entering a purchase order – use a daily or monthly rate.
▪Paying a vendor invoice – use the actual rate the bank provides for the foreign exchange transaction.
▪Revaluing foreign currency creditors at month end – monthly rate.
▪Revaluing foreign currency creditors at year end – yearly rate.
▪Simply recording the rate used at close of year – yearly rate. |