Multicurrency: Exchange Rate Types

Corporate rate

The corporate rate is the exchange rate used to convert an amount in transaction or base currency (depending on your selection on the Enable multiple currencies screen when you configure Multicurrency) to the organization currency. In most cases, an organization’s headquarters distributes a list of corporate rates to all offices at regular intervals, such as quarterly or monthly. For consistency, the program uses this rate to calculate amounts in reports and other analysis tools so the converted amounts are consistent across all offices.

Daily rate

Although the program uses a corporate rate to calculate amounts in reports and other analysis views, some organizations may require that offices import rates more frequently. These daily rates, which may actually be imported on a monthly or weekly basis, are often more current than the corporate rates.

The program uses the most recent exchange rate, whether daily or corporate, to convert transaction currency to base currency, so the office’s general ledger includes the most accurate revenue amounts.

Spot rate

A spot rate is an exchange rate you can manually apply to a single transaction, a revenue selection, or a revenue batch to convert the transaction currency to base currency. The spot rate provides a means for you to apply a rate other than a daily or corporate exchange rate to a transaction. For example, if you receive a donation from a locale with a volatile market, you may contact your bank to get the currency exchange rate at the time you enter the revenue rather than use the daily rate. The program does not automatically apply a spot rate to transactions.