Reasons why Current, Average and Historical Consolidated Exchange Rates will have the same values:
- The Child and its Direct Parent’s base currencies are the same. In this instance, there will be no roll-up, thus, the Current, Average and Historical Consolidated Exchange Rates between the Child <> Direct parent are all 1.00.
- As mentioned above, Average and Historical rates are the weighted average of all transactions posted to accounts which has Average and Historical rates as its General Rate Type within a specified period. Even though there are qualified transactions posted to the child subsidiary and its base currency is different from its direct parent, those transactions might have been posted to the Child subsidiary in the month-end. In this case, the system will just get the month-end rate as the basis of the Average and Historical rates, which is technically also the Current rate being the ending rate.
- In a Root Parent <> Child <> Grandchild Subsidiary hierarchy, transactions are posted to the Grandchild subsidiary. However, the Average and Historical rates are still not calculated by the system and are instead the same with the Current rate.