Introduction

This guide explains the use cases for special exchange rates in TRAEDE. These rates allow you to override the default daily exchange rates (from the European Central Bank) with a fixed value for specific purposes.

This is especially useful for businesses dealing with fixed-cost purchases (like gold or materials), needing consistent conversion logic for customer balances, or managing currency fluctuations.

What are special exchange rates?

Special exchange rates are fixed currency rates you define to ensure consistent calculations for specific functions in TRAEDE. These are not updated automatically and will override default rates when used.

The three types of special exchange rates

1. Customer balance and credit limit

• Used for: Converting customer balances and credit limits (typically imported from your ERP) into the customer’s local currency.

• Example:
  Your ERP sends a customer’s credit limit in DKK, but the customer orders in EUR. A special exchange rate ensures TRAEDE always uses the correct value when checking the credit limit during ordering.

2. Production orders

• Used for: Fixing the exchange rate for currency conversion in production costs.

• Example:
  If you purchase gold for jewelry production in USD and want a stable cost value (e.g., 0.14 USD/DKK), you can enter this fixed rate for all USD-based production orders.
  This ensures the cost does not fluctuate daily.

3. Invoices and credit notes (⚠️ not recommended)

• Used for: Fixing invoice currency conversions.

• Note: This is not recommended unless you have a specific reason, such as wanting to introduce a buffer or apply a conservative rate.

• Example:
  A Swedish company wants to fix the SEK-to-EUR rate due to currency instability. This might be done to protect margins.

⚠️ If your currency is pegged to EUR, using a special rate is likely unnecessary.

Once a special exchange rate is defined, it will override the standard exchange rate only for the relevant use case. If you do not enter anything, the system will fall back to the daily exchange rate from the ECB.