Rate types in Foundations enable you to group and categorize different exchange rate values within an exchange rate group. For example, you could use one rate type to store standard daily rates, another to store rates at the end of a period, and another to store an average rate during a specified period. Foundations provides several managed rate types by default. You can configure how you use the rate types and create new values, if required. Other apps may also create managed rate types.
The following table provides suggested uses for the Foundations managed rate types.
|
Rate Type |
Suggested Use |
|---|---|
| Average | Average exchange rate for a specific period, such as a week, month, or quarter. |
| Budget | Estimated exchange rate used by financial management to draft budgets and establish business objectives. |
| Closing | Exchange rate at the end of a period of time, such as a trading month. |
| Commercial | Fixed exchange rate used to record transactions during a trading period, such as a trading month. |
| Historical | Exchange rate in effect at the time an asset or liability is acquired. |
| Spot | Current exchange rate at the precise moment of quotation, provided by the currency market. |
| Translation | Exchange rate used to convert the results of a parent company’s foreign subsidiaries to its reporting currency during the financial statements consolidation process. |
As rate types are stored as picklist values, you can also specify a default value. The default rate type is automatically displayed whenever you view the Manage Exchange Rates page. It is also used in the Update Exchange Rates scheduled job if no rate types have been specified for import. For more information about specifying a default picklist value, see the Salesforce Help.