All products in IFS Applications use the information in the Currencies folder in IFS/Accounting Rules. Use the windows in the folder to enter information about how the company will use currency codes, currency rates, and currency rate types. The currency codes must be marked in ISO Code Usage before they can be entered in Currency Codes. In Currency Rates an exchange rate is entered for a specific date interval. A currency rate type is a list of currencies and is defined in Currency Rate Types. The different currency rate types allows the user to assign different exchange rates to a currency. For example, there can be one currency rate type for supplier invoices and another for customer invoices.
1. Default Data in Currency Rate Types window.
When a company is created the following default data is created in the Currencies folder in IFS/Accounting Rules. When a company is created, the user has an option to enter a parallel accounting currency. The choice of parallel accounting currency has no influence on the creation of default data for currency types and currency rates.
In Currency Rate Types, the following default currency rate types and currency rates are created. The examples below show three cases of accounting currencies.
1. Accounting currency is not an EMU currency.
| Currency rate type | Reference currency | Currency exchange rates | Maintenance |
| 1 | Accounting currency | Only rate for accounting currency (=1) | All rates except the EMU rates are to be updated, also the rate for EUR. |
| 2 | EUR | All 11 EMU currencies with fixed rates. | None. Update only if a new currency joins the EMU. |
Exchange rates are retrieved from currency type 1 except in the case of triangulation where the current EUR rate is retrieved from currency rate type 1 and the EMU rate is retrieved from currency rate type 2.
2. Accounting currency is an EMU currency.
| Currency rate type | Reference currency | Currency exchange rates | Maintenance |
| 1 | Accounting currency | Only rate for accounting currency (=1) | Only for historical reasons. All currency rates valid before 19990101. |
| 2 | EUR | EUR rate 1. All 11 EMU currencies. | All currency rates valid from 19990101 are maintained here. |
As all currency rates are quoted in relation to EUR from 19990101, there is no need for currency type 1 but for historical reasons.
3. Accounting currency is Euro (EUR).
| Currency rate type | Reference currency | Currency exchange rates |
| 2 | EUR | EUR rate 1. Currency rates for all used currencies. |
2. Default Data in the Currency Code window.
In Currency Codes the EMU currencies are marked with a date in the Valid as EMU Currency From Date field. If a new currency is to join the EMU it has to be included as EMU currency from the date when the currency rate to EUR is fixed. Do this by marking the currency code and then selecting the Include Currency as EMU currency operation.
3. Default Data in the Currency Rate window.
In Currency Rates the rates for EMU currencies can not be entered after the date of being included as EMU currency. The rate is fixed at the date of entry in the EMU.
The check box for Inverted Quotation is checked for EMU currencies. This means that currency rates entered in Currency Rate Types where EUR is reference currency are expressed as number of foreign currency units needed to equal 1 EUR.
Example: "Normal" rate
How many SEK do I get for 1 USD?
Rate USD = 8.00
100 USD * 8.00 = 800 SEK
Example: Inverted rate
How many EUR do I get for 1 SEK?
Rate EUR = 0.125
100 EUR/0.125 = 800 SEK
Note! The check box for Inverted Quotation must not be changed in an existing company!