use of the cross-rate functionality.

Finance and Operations/AX User Forum
1

Hi ,

what is the use of the cross - rate functionality in AX ?

Could any pioneer explain with an example.

Thanks in advance.

2

Any updates ?

3

Any reference to any module or area?

4

Hi Steven ,

The question related to Finance module .

5

Anywhere in particular in the finance module?

6

Cross rate functionality is used when settling transactions in two different currencies. It allows you to specify the rate at which you would like to settle the transactions at.

As an example, you may give customers the ability to pay invoices in a different currency when you bill them. Let’s say you invoice customer A for 100 GBP, at the time of invoice (say 01.09.2014) the exchange rate may be 1 GBP = 1.2 EUR and you may agree with them that 120 EUR would be accepted to settle the invoice.

The customer A may then make a payment of 120 EUR to settle their invoice as per the agreement. They make the payment on 30.09.2014 when the exchange rate is 1 GBP = 1.4 EUR. Therefore their 120 EUR is now worth 85.71 GBP.

If you settle the two transactions using open transaction editing, by default it will convert the 120 EUR to 85.71 GBP and an amount of 14.29 GBP will be left open on the invoice.

With the cross-rate, you would mark the payment as the “Primary payment” using the “Mark” button on the Open Transaction Editing form. Once this has been done, you can enter a cross rate on the invoice line of 1.2* , this would mean that you will settle the invoice with the payment at an exchange rate of 1.2, allowing full settlement of the invoice at the rate agreed with the customer.

*(whether it is 1.2 or 120 is dependent on your exchange rate units, AX actually has 100 as a standard)