Global Preferences - Currency - Exchange Rate
In this area of preferences, you can view existing exchange rates and add new exchange rates.
Base Currency
The Base Currency is the currency that is used as the point of comparison when creating exchange rates for foreign currencies. This is typically the currency of the country in which your business is headquartered.
Foreign Currency
Select a foreign currency from the drop-down to view existing exchange rates for the currency or to add new exchange rates.
Exchange Rate table
| Column | Description |
|---|---|
| Effective Rate | The date the exchange rate becomes effective. |
| Take | The number of units in the selected Foreign Currency that the retailer will take in payment to equal one unit of the Base Currency. For example, if using the US Dollar as the Base Currency and Yen as the Foreign Currency, you might enter 108 as the Take rate. In this example, if a transaction total is $10.00, then 1080 yen will be taken to balance the transaction. |
| Give | The number of units in the selected Foreign Currency that the retailer will give to equal one unit of the Base Currency when it comes to giving change. |
| Cost | The number of units in the selected Foreign Currency that equal one unit of Base Currency when it comes to calculating Cost values (e.g. the cost of items ordered from vendors located in foreign countries). |
| Take (foreign) | Inverse of the Take rate. This is the number of units in the Base Currency that equal one unit of the selected Foreign Currency when it comes to taking payment. |
| Give (foreign) | Inverse of the Take rate. This is the number of units in the Base Currency that equal one unit of the selected Foreign Currency when it comes to giving change. |
| Cost (foreign) | Inverse of the Cost rate. This is the number of units in the Base Currency that equal one unit of the selected Foreign Currency when it comes to calculating Cost values |
Understanding Exchange Rates
Exchange rates may look a little confusing when viewed in table format, particularly the Take (foreign) and Give (foreign) rates. For example, let's say the current exchange rate between the US Dollar and Japanese Yen is one dollar equals 108 Japanese Yen. In the table, you will see the Take (foreign) rate as 0.00925925925925926. If you multiply this long decimal number by 108, you will find that it equals approximately 1.
Sample Currency - Exchange Rate Preferences:
