Concept: Rates, Rate Types, and
Conversion
A rate type is a way to identify the source and purpose of a set of rates.
Example: A rate type of current is the current market rate on any given day. A rate type of
average is the average of rates over a period. A rate type of historic is a blended rate that,
when applied, results in the proper historic valuation of an account.
Depending on the type of conversion, Workday uses different rate types to
determine the rate. For conversion from:
- Transaction currency to bank account currency. Workday uses the default rate type, but you can override the rate.
- Transaction or bank account currency to the company currency. Workday always uses the default rate type.
- The company currency to the reporting currency. Workday uses the rate type that you specify in the translation rules.
To obtain the target currency amount for all currency conversions, Workday multiplies the
source currency amount by the rate.
Workday
supports 12 decimal precision for currency exchange rates that you enter or upload. When
calculating exchange rates, such as currency cross rates or inverse rates, Workday rounds
the calculated rate to 12 decimal precision. When you calculate a rate with more than 18
digits, Workday truncates display of the rate to 18 digits.
Workday enables you to:
- Define rate types using theMaintain Currency Rate Typestask.
- Define the default currency rate type for the tenant usingDefault Valuessection of theTenant Setuptask. You can define the default currency rate type using theCurrency Rate Type Overrideon theEdit Company Accounting Detailstask.
- Define or modify the exchange rates using theMaintain Currency Conversion Ratestask.
- Use theCurrency Rates as of Datereport and theHistoric Currency Ratesreport to view rates.