Foreign Exchange rate

Right now the manager template for exchange rate is:

1 Functional Currency = Foreign rate

Is there as way to have an option to use the other way around? like:

1 Foreign Currency = Functional currency rate

We need this because if we transposition the rate (multiply divide) there will be a large difference on the forex gain or loss.

for example
our central bank will give us a rate:
1 USD = 50.144000PHP

it will be okey if our functional/presentation currency is USD. But the problem starts if our functional/presentation currency is PHP. we need to recompute and put:

1PHP = .01994 USD
The problem is that there will be a difference in the translation.

No, because you have to have the base currency first so that the background calculations will be correct.

Can you give an example of this, the forex gain or loss shouldn’t vary much because of which currency is placed first.

A USD 780 @ 50.144 = PHP 39,112.32
A PHP 39,112.32 @ 0.01994 = USD 779.90

This is not a matter of how the rate is expressed. This is purely a matter of arithmetic precision. You’ve quoted the first rate with 8 significant figures, but the second with only 4. The correct expression of the second rate to 8 significant figures would be 1PHP = 0.019942565 USD. That truncated value converts the other direction to 1 USD = 50.144001. Pretty darn close.

There is always rounding error, but the math doesn’t change. What really changes is the buy vs. sell rates from your bank. The spread there is typically huge.