Currency Average and Spot Rates

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Posted on by john.ellis

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Hi:

Within the Currency Exchange Rates window, we need to enter average and spot rates.

By finding the average rate online and then entering that average rate as the rate on the first day of the month, we could hypothetically use that rate for all transactions up to but not including the month end date.

This then seems to fall apart if there are transactions occurring on the final day of the month, which would then be translated at the month end rate rather than the average rate.

Is it possible to select between average and spot rate? And, is "spot rate" denoted as the month-end rate?

Thanks!

John

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Dallefeld 211 User Group Leader on at

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There is not a selection for average or spot.

Question for you, the transactions in question are customer and vendor related or would they be related to consolidations? If related to consolidations, you have option on which exchange rate to utilize.

Second question, why does it matter if the final day of the month is average or spot. If you did average for that day and then translate to spot rate, doesn't that end up at the same place for that one day?

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john.ellis 3,510 on at

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I'm not sure how to answer either question.

I do know that it has not one thing in the world to do with consolidations.

In an older system, you could select "average" if you wanted. This is good for balance sheet accounts, while spot rates would be for income statement accounts.

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Dallefeld 211 User Group Leader on at

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Have you run the Adjust Exchange Rates function? I believe this adjust exchange rates to the end of month value which would be your spot rate.

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Dallefeld 211 User Group Leader on at

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John, check out the Reporting tab on your chart of accounts. There is an Exchange Rate Adjustment setting for reporting. This specifies how the account will be adjusted for exchange rates.

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YUN ZHU 95,720 Super User 2025 Season 2 on at

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Hi, it is not possible to select between average and spot rate.

If you want real-time exchange rates, the best way to do this is to enter the day's rates daily.

As for the average exchange rate, as Kim mentioned, Run the Adjust Exchange Rates batch will adjusted for all exchange rates.

PS: On many page, you can find the Currency Factor field, so you can check the exchange rate used by the current document.

Hope this will help.

Thanks.

ZHU

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Community Member on at

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John,

Just adding to other replies... As an Accountant and Implementer/Architect of NAV|BC, I teach my customer to enter the Daily Exchange Rate, and with BC just setup the Daily Service to auto-load. I also make sure that the Chart of Accounts Card is setup for Consolidation Translation Method.

When running the Adjust Foreign Exchange Rates and will will use the Exchange Rate for the Ending Date, for Customers, Vendors, and Bank Accounts. If Consolidating, it will use the Consolidated Translation Method.

Hope this helps.

Thanks,

Steve

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