FX Rates Integration

LeaseAccelerator manages leases and transactions in all known currencies. It maintains a database for currency exchange (FX) rates for all currency pairs needed by the client.

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Business architecture

LeaseAccelerator allows each ledger to have one functional currency and one reporting currency. Each currency pair can have two different FX rates:

Spot. A spot exchange rate is the price to exchange one currency for another for immediate delivery, which is normally used to reflect daily changes in FX rates.
Weighted Average. A weekly, monthly, quarterly, or yearly average exchange rate, which is used to reflect an accounting rate that is less fluctuating. Some companies call it “corporate rate” which can be fixed for a week, a month, or across a full accounting period or fiscal year.

FX rates have an effective date. The rates remain effective until LeaseAccelerator receives rates with a later effective date. LeaseAccelerator adds the new rates and marks them as current; LeaseAccelerator does not overwrite older rates. If LeaseAccelerator receives FX rates with an effective date equal to the existing effective date, LeaseAccelerator overwrites the existing FX rates.

To support LeaseAccelerator’s use of FX rates, the client is expected to do the following:

Send new FX rates as soon as they change.
Send all rates including inverse rates (However, LeaseAccelerator will calculate any missing inverse rates).
Send all rates with up to 12 decimals. LeaseAccelerator truncates any further digits.
Only use ISO international standard 3-digit codes for currencies.
Either the “To currency” or the “From Currency” must be the base currency.

Timing

Once a lease contract (deal or schedule) is “Booked”, LeaseAccelerator’s accounting engine will automatically run and generate all the accounting entries and calculations for the lifetime of the lease. Once the accounting engine completes the calculations, LeaseAccelerator “sweeps” all the resulting entries into the “Reporting Engine.”

Consequently, updating FX rates will trigger a “sweep” for all lease contracts that have a currency different from the corresponding ledger’s currency (functional currency) or reporting currency to apply the new FX rates. The re-sweep affects all deals with ledger postings on or after the effective date of the FX rate(s) loaded.

The reporting engine may be suspended during the “sweep” duration. The sweep duration will vary depending on the number, complexity, and size of these leases. Hence, users are advised to consider the sweep time when choosing the timing and frequency of FX updates.

Integration process

Process Step ID	Process Step Description	Phase
P100	Start	Extract FX rates
P200	Extract FX Rates	Extract FX rates
P300	Send FX Rates to LeaseAccelerator	Add new FX rates into LeaseAccelerator
P400	Receive FX Rates File	Add new FX rates into LeaseAccelerator
P500	Validated?	Add new FX rates into LeaseAccelerator
P600	Add New FX Rates	Add new FX rates into LeaseAccelerator
P700	Trigger FX update for applicable leases	Add new FX rates into LeaseAccelerator
P1000	Stop	Add new FX rates into LeaseAccelerator

P100: Start

This process must be triggered daily to update FX rates. The rates remain in effect until LeaseAccelerator receives rates with a later effective date.

P200: Extract FX rates

The client’s integration engine automatically triggers a process to extract the latest FX rates.

P300: Send FX rates to LeaseAccelerator

Method	Process	Next Step
RESTful API	The client’s integration engine calls LeaseAccelerator FX API (ImportExchangeRates) with proper request data and payload. LeaseAccelerator validates and imports the payload. LeaseAccelerator acknowledges the request with an OK response.	P500
File- based	The client’s integration engine places the file into the client’s SFTP folder as per the naming convention agreed. LeaseAccelerator file watcher will detect the file and ingest it, then delete it form the client’s SFTP folder.	P400

Method

Process

Next Step

RESTful API

The client’s integration engine calls LeaseAccelerator FX API (ImportExchangeRates) with proper request data and payload.

LeaseAccelerator validates and imports the payload. LeaseAccelerator acknowledges the request with an OK response.

P500

File- based

The client’s integration engine places the file into the client’s SFTP folder as per the naming convention agreed.

LeaseAccelerator file watcher will detect the file and ingest it, then delete it form the client’s SFTP folder.

P400

P400: Receive FX rates file

LeaseAccelerator’s integration engine automatically detects the FX file (Note that FX rates can also be uploaded manually using the Bulk Import functionality in the LeaseAccelerator application).

P500: Validated?

LeaseAccelerator inspects the file for errors and potentially invalid entries for currency codes, rate types, dates, and values.

Method	Process	Next Step
RESTful API	If the file contains any errors, LeaseAccelerator rejects it and sends error status in the API Response. The FX rates must be corrected, and the API called again. (P200)	P600
	Otherwise, LeaseAccelerator acknowledges the request with an OK response.
File- based	If the file contains any errors, LeaseAccelerator rejects it and sends an email alert to the designated person. (P200).	P600

P600: Add new FX rates

LeaseAccelerator adds the new FX rates into its database and sends a message to the designated user.

If the effective date equals an existing effective date, LeaseAccelerator will overwrite the FX rates for that date.

P600: Trigger FX update for applicable leases

Updating FX rates will trigger a “sweep” for all lease contracts that have a currency different from the corresponding ledger’s currency (functional currency) or reporting currency to apply the new FX rates.

P1000: Stop

The process ends, and the client updates the proper log.

Additional use cases

Case trigger

Wrong rates were sent to LeaseAccelerator.

Scenario

A file with wrong data was sent to LeaseAccelerator and was uploaded.

Steps and Expected Outcome:

The client generates another file with the correct data and re-uploads it. LeaseAccelerator overwrites the old data.

Case trigger

A reverse exchange rate for a currency pair was missing.

Scenario

The client sends the exchange rate from one currency to the another.

Steps and Expected Outcome:

LeaseAccelerator automatically calculates the missing inverse value.

Integration data

During the integration process, LeaseAccelerator receives data from the FX file as shown in the FX-C1 connection in the integration process diagram on page 81.

FX rates from ERP to LeaseAccelerator

LeaseAccelerator expects the data shown in the table from the FX rates file.

Field	Type (Format)	Allowed to be Null	Comment
To Currency	3-character string	No	Target currency code from standard international currency codes and not the same as From Currency
From Currency	3-character string	No	Source currency code from standard international currency code
Effective Date	Date (mm/dd/yyyy)	No	Effective Date
Rate	Decimal	No	Greater than 0.0 Up to 12 decimal places
Rate Type	Text	No	Spot or Weighted Average
Source	String	Yes	Source of Rate – free text to indicate source system

For each currency pair, the client sends two records for the exchange rate and the inverse rate. However, if one is missing, LeaseAccelerator automatically creates inverse rates.

For file-based integration, the column (field) order does not matter. However, the column names must match, even with the spaces. So, it should be something like:

Effective Date,From Currency,To Currency,Rate,Rate Type,Source

FX Rates Integration

Business architecture

Timing

Integration process

Integration data

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