How does the Web TimeSheet calculate Exchange Rate?
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Exchange rate between two currencies specifies how much one currency is worth in terms of the other. It is the value of a foreign nation’s currency in terms of the home nation’s currency.
Web TimeSheet does all its calculations and conversions using the base currency. To setup Base currency, please refer the solution Use of Currency in Web TimeSheet.
The exchange rate needs to be manually setup whenever a new currency is added to the Web TimeSheet. The exchange rate for the new currency will always be a multiplication factor of the base currency.
Let us assume that our base currency is CAD (Canadian dollar). The base currency will always have an exchange rate as '1'. Let us create a new currency (XYZ) and define the exchange rate as 0.15011328. This implies that 1 XYZ is equivalent to 0.15011328 of the base currency.
==>> 1 XYZ = 0.15011328 of the base currency ( Here the base currency is 1)
==>> 1 XYZ = 0.15011328 / 1
==>> 1 XYZ = 6.66148
So, 1 XYZ is 6.66148 CAD.
This is how the system calculates the exchange rate whenever an expense is raised in a foreign rate and the reimbursement is in base currency.
It is recommended that you create a process for handling manual exchange rate updates, because Replicon does not connect to an external currency system to obtain updates.