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[v11] what's the impact/purpose of a manual "exchange rate entry"?


#1
  • 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

  1. where this automatic 0.149 rate comes from?
  2. what’s the impact/purpose of creating an “Exchange Rate” entry?

#2
  1. Auto fetching of currency rate is from https://www.frankfurter.app/

  2. Manual “Exchange Rate” entry is to override auto-fetched rate.


#3

that’s pretty much what I though it should be. Do you have any practical experience for this (manual currency exchange overriding the auto-fetched rate) to work?

Unfortunately it seems that it doesn’t work at all in my test environments (neither in v10, nor v11).


#4

Yes, I think it works, however I am not sure about all the settings you have in your environment to comment on why it does not work for you


#5

actually after a couple of hours. It works. I am wondering whether you net a pair of rates, i.e.

  • USD > CNY = 6.25

and

  • CNY>USD = 0.16

… for this to work in any direction, or is the system smart enough to ‘do the math’?


#6

Yes you have to set up both rates for it to work. Maybe that was the missing piece in your set up.


#7