Currency Management
Overview
OVERVIEW
  • Currency Management is the process by which global companies with significant cross-border transactions implement strategies to limit their exposure to foreign exchange fluctuations, in order to maximize the return on their foreign market operations.​

  • Sales order which identifies a cross border sale of goods or services is created in the system, the corresponding currency exchange rate is used to convert the amounts on the document line items from the functional currency to the transaction currency code required to fulfil the financial transaction.​

  • As a part of B2B, cross border financial transactions, Value Added Tax (VAT) or Goods and Services Tax (GST) is required to be calculated and disclosed on the sales order. ​

  • When the situation occurs, that currency is converted from the company currency to a transaction currency on a financial transaction, the calculation of the indirect tax on that sales order must also use the same currency code and exchange rate as the transaction uses. ​

  • In addition, businesses must verify the indirect tax charged on the invoices they receive from their vendors even when it is converted from one currency to another. 

  • ONESOURCE Indirect Tax Currency Management APIs are available for the following categories:

    1) Exchange Rate

     An exchange rate is the rate at which one national currency will be exchanged for another.

    2) Exchange Rate Source

    Exchange Rate Sources are locations containing sets of exchange rates for use in your calculations. You must define at least one exchange rate source to enable currency conversions in Determination.