I understand that Exchange Tables are set to convert amounts from functional to foreign currencies in GP SO's and PO's. But what is the purpose of Rate Types? Is it to 'organize' your Exchange Tables? In Multicurrency Setup, you can type in Rate Types in the top left window and also select Default Rate Types. I do not understand what these two sections do in this window.
Read the below content from GP help file for Rate types understanding that help you to understand Rate Type concept clearly.
Rate types help you identify exchange tables when entering transactions. You might want to set up different rate types to use for different transaction types. For example, you might set up Buy and Sell rates types, using the Sell rate type for purchasing transactions and the Buy rate type for sales transactions. The exchange rates for both rate types can be taken from the same exchange rate table, or a different exchange rate table could be used for each rate type.
Three rate types—Buy, Sell, and Average—have been included with Multicurrency Management. You can set up an unlimited number of additional rate types in the Rate Type ID list. For example, you may want to use different rate types for a particular customer or vendor but still use the same exchange rate table. By using a different rate type for the customer or vendor, you also can assign different multicurrency posting accounts to the rate type in order to track multicurrency gains and losses for that customer or vendor in specific accounts.
Thanks, so to clarify, rate types are used more for organiztional purposes? To organize into categories for purchasing or selling. And to organize your exchange rates?
Yes Catherine. Your understanding is correct.
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