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Microsoft Business Central

Making sense of the Currency Exchange Rates

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To access the Currency Exchange Rate page you must first go to the Currencies page, highlight the currency in question, and then drill down on the Exchange Rate. Alternatively from the Currencies page, you can highlight the currency and click ProcessExch. Rates as per below.

This will open the Currency Exchange Rates window which is shown below:

The “Exchange Rate Amount” is the rate to use for the “Currency Code” selected on the line, and the “Relational Exch. Rate Amount” relates to the rate to use for the “Relational Currency Code”. (generally, it's left blank so it's the local currency – see further below for an example where this isn’t the case).

Therefore using the Currency Exchange Rates window shown above, as we have 1.0 in the Relational Exch. Rate Amount (GBP) and 1.3 in the Exchange Rate Amount (EUR) this means 1.3 Euros is equal to 1 GBP. (The “Exchange Rate Amount” is acting as the exchange rate)

Hence entering a transaction for €200.00 would equate to £153.85 (i.e. 200 / 1.3 = 153.85). I could also flip this by entering 1.0 in the “Exchange Rate Amount” and 0.76923 in the “Relational Exch. Rate Amount” as per below:

This now means the “Relational Exch. Rate Amount” is acting as the Exchange Rate. In this example €1 (Exchange Rate Amount) is equal to £0.76923 (Relational Exch. Rate Amount). Therefore entering a transaction for €200.00 would also equate to £153.85 (i.e. 200 * 0.76923)

Both would work exactly the same it's just a slightly different configuration.

Adding a Relational Currency Code

Currency Exchange Rates page has been changed for EUR to include USD as the Relational Currency Code as per below:

Therefore if we were to raise a €200 Invoice the GBP will be calculated as follows:

Step 1 Euros to USD :- €200 / 1.3 = $153.8462

Step 2 USD to GBP :- $153.8462 / 1.39 = £110.68

To confirm an Invoice has been added in Business Central and below is the statistics page confirming our calculations.

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