Exchange Rate Derive (26.4.5) lets you derive new exchange rates for currency pairings using the exchange rates between the base currency of the current entity, and the base currencies of other entities in the same shared set.

The system determines base currencies for all other entities that use the same exchange rate shared set as the current entity. For each combination of these currencies, if a corresponding exchange rate of the specified exchange rate type and start date does not exist, the system determines if an exchange rate can be derived using the current entity’s base currency.

For example, if an exchange rate is defined between entity base currencies A and B and another exchange rate is defined between currencies A and C, you can run this function to create the missing exchange rate between currencies B and C.

You can specify the exchange rate type to use for the calculation and the resulting exchange rates. Any of the available exchange rate types can be specified.

Entity 1 has a base currency of EUR and exchange rates as follows:

Entity 2 has a base currency of GBP. The derived rate between GBP and USD is:

For Entity 3 with a base currency of USD, the derived rate between USD and GBP is:

The following accounting exchange rates already exist for an exchange rate shared set:

Entities A, B, and C are part of the same exchange rate shared set. If entity A is the current entity, the system derives exchange rates from the euro to yen and mexican pesos (MXN), and from British pounds (GBP) to Canadian dollars (CDN), euro, and yen. This is because an exchange rate exists between US dollars and the other base currencies in the same shared set (euro and GBP), and between US dollars and the yen, MXN, and CDN.

However, because YEN, MXN, and CDN are not base currencies of entities in the shared set, the system cannot derive exchange rates for the value of these three currencies relative to each other.

Click Apply to display the matching records in the grid.