 • # Calculation of "local price": divide or multiply by z82 currency ratio?

• Article Type: General
• Product: Aleph
• Product Version: 18.01

Description:
I have a general invoice in non USD currency:

z77-net-amount = 10.00 EUR
z77-i-currency = EUR
Z77-I-CURRENCY-RATIO = 0

The system calculates ‘Local price’ by *multiplying* the z77-net-amount and EUR ratio in the z82 table:

10.00 * 1.28 = 12.8

I don’t think the above calculation is correct.

Shouldn’t the system *divide* the z77-net-amount by EUR ratio?

Resolution:
The z82 currency ratio is the ratio of the local currency (US dollar) to the foreign currency.

Thus, if the EURO is worth \$1.10, then one dollar is worth 1 / 1.10 = .91 euros and the ratio is .91.

If the Canadian dollar is worth \$ 0.75, then one US dollar is worth 1 / .75 = 1.33 CAD and the ratio is 1.33.

The ./com/price_to_local program does the following calculations:

COMPUTE RATIO ROUNDED = Z82-RATIO / 1000000.
...
COMPUTE LOCAL-PRICE ROUNDED = RATIO * PRICE.

Note: The date for the most recent EUR ratio in the as-delivered of v18 Z82 is 2004 and the ratio is 1.28. Since that time the ratio has changed. One dollar is now worth 0.73 euros.