How To: Setup Currency Conversion Rates
Table Of Contents
The Currency Conversions section in Khaos Control stores the exchange rates used when converting between currencies.
Typically, you should create conversion rates from your base currency, usually Pound Sterling (GBP), to any other currencies used within your business. Khaos Control automatically calculates the reciprocal conversion rate for the reverse currency pair.
Add a Currency Conversion Rate
- Open the System Data screen (show me how).
- Open the Currency Conversions section.
- Press Alt + E or click Edit to enter edit mode.
- Press F3 or click Add to create a new conversion rate.
- Complete the following fields:
| Field | Description |
|---|---|
| From | The currency you are converting from. This will normally be Pound Sterling (GBP). |
| To | The currency you are converting to, for example Euro (EUR) or US Dollar (USD). |
| Factor | The exchange rate to be applied. |
| Valid Until | The date until which the exchange rate remains valid. |
- Repeat for each currency you need to maintain.
- Press Ctrl + S or click Save once all conversion rates have been entered.
Example Currency Conversion Rates
| From | To | Factor | Valid Until |
|---|---|---|---|
| Pound Sterling | Euro | 1.5224 | 28/02/2016 |
| Pound Sterling | US Dollar | 1.9712 | 28/02/2016 |
| Pound Sterling | Euro | 1.4940 | 31/03/2016 |
| Pound Sterling | US Dollar | 1.9610 | 31/03/2016 |
| Pound Sterling | Euro | 1.4729 | 30/04/2016 |
| Pound Sterling | US Dollar | 1.9596 | 30/04/2016 |
| Pound Sterling | Euro | 1.4765 | 31/05/2016 |
| Pound Sterling | US Dollar | 2.0056 | 31/05/2016 |
How Exchange Rate Expiry Works
Khaos Control allows you to maintain multiple exchange rates for the same currency pair, provided they have different expiry dates.
Important Notes
- If multiple rates exist for the same currency pair, Khaos Control uses the rate that expires first until its expiry date is reached.
- If you enter a new exchange rate that overlaps an existing date range, the row may be highlighted to indicate a potential issue.
- Regularly reviewing exchange rates helps ensure purchasing and financial transactions are processed accurately.
Understanding Grid Background Colours
The Currency Conversions grid uses colour coding to highlight potential problems.
| Colour | Meaning |
|---|---|
| Yellow | The same currency is being converted to itself using a factor other than 1. |
| Orange | More than one valid conversion exists for the same currency combination. |
| Red | The conversion rates are incompatible and do not correctly match their reciprocal conversion. |
If a row is highlighted, review the exchange rate before saving.
Incompatible Conversion Rates
Khaos Control prevents invalid exchange rate combinations from being saved.
The following situations are not permitted:
Duplicate Rates with Conflicting Dates
You cannot create duplicate currency pairs with overlapping or conflicting expiry dates.
Non-Reciprocal Currency Rates
Currency pairs must correctly reflect the reverse conversion rate.
For example:
- Pound Sterling → Chinese Yuan
- Chinese Yuan → Pound Sterling
Both rates must correspond correctly to one another.
Invalid Same-Currency Conversions
A conversion between the same currency, such as:
- Pound Sterling → Pound Sterling
must always use a conversion factor of 1.
Any other value will be treated as invalid.
Note: If incompatible rates are entered, the grid colour will indicate the issue and Khaos Control will prevent the changes from being saved until the error has been corrected.
Download Live Exchange Rates
Khaos Control can retrieve the latest available exchange rates automatically.
- Open the System Data screen (show me how).
- Open the Currency Conversions section.
- Press Alt + E or click Edit to enter edit mode.
- Right-click within the grid.
- Select Get Live Exchange Rates.
- Review the summary of the exchange rates that will be applied.
- Confirm the warning message and click OK.
The currency conversion table will then be updated using the retrieved exchange rates.
Additional Information
Exchange rates used for customs and VAT calculations are typically published by HM Revenue & Customs on a monthly basis, with additional updates issued where exchange rates change significantly within the current period.
For the latest customs exchange rates, refer to the HM Revenue & Customs website:
HM Revenue & Customs Exchange Rates