- my default company currency is USD
- there are however some cash accounts in CNY also
So the understanding how currency exchange (USD>CNY) works is significant
now I have manually created Currency exchange USD > CNY with a rate of 1 USD = 6.25 CNY
that leaves me believing USD is being rated in any USD/CNY transaction with 1:6.25 (or 0.16 which is the same rate the other way around)
now I make a new “Payment Entry” (internal transfer) between 2 CNY cash accounts.
Surprisingly the system wants to use an exchange rate rate of 0.149 (which equals 1:6.7114 and not 1:6.25 [which equals 0.16]).
so, I am wondering
- where this automatic 0.149 rate comes from?
- what’s the impact/purpose of creating an “Exchange Rate” entry?