What is triangulation currency and how is this useful in AX and financial transactions?
Hi,
Triangulation is the process by which a conversion between two currencies takes place by way of a third reference currency. This feature is used in EU countries where the conversion to the EURO is being undertaken whilst the national currency is phased out
To support triangulation, an AX system provides a means to define that you want a currency pair to triangulate through a fixed reference currency. The actual conversion process is done in a two-step procedure in which the from-currency amount is first converted to the reference currency and then to the destination currency, using the appropriate exchange rates. Supporting triangulation also affects the user interface, as there are now two or possibly three exchange rates that are relevant to the conversion. When viewing a triangulated conversion at a detailed level, users access three visual rates:
· A rate for converting the from-currency to the reference currency.
· A rate for converting the reference currency to the to-currency.
· A cross rate indicating the rate that would be required to convert the from-currency directly into the to-currency.
Only one currency can represent the Triangulation currency. To change the Triangulation currency, first clear the Reference currency for triangulation check box on the EUR record in the Currencies form. Then select the Reference currency for triangulation on the desired currency.
To enable Triangulation currency feature
General Ledger → Setup → Currency → Currencies
Regards,
Narendhra