Currency conversion in DSR and CDM
The DSR and CDM standards enable the communication of three types of monetary amounts in multiple currencies:
The currency of the transaction (DSR);
The currency of reporting (DSR and CDM); and
The currency of invoicing (CDM).
Both standards enable the communication of two monetary amounts for most crucial financial data points. In addition to these data points the standards also enable the identification of the conversion rate, the source for the conversion rate and the date the conversion rate was published.
For recipients of messages containing these data points, the conversion rate should be used to multiply the source amount to arrive at the target amount. In the DSR standard this means that a transaction amount multiplied by the conversion rate will result in the amount being reported. In the CDM standard a reporting amount multiplied by the conversion rate will result in the amount being invoiced.
These conversion rates are solely for the conversion of the monetary amounts included in the relevant messages. The nature of the status of such conversion rates and the date the conversion rate was published is determined by the bilateral agreement between the licensee and the licensor.
As the application of multiple currency conversions to the same monetary amounts will likely lead to errors, DDEX recommends that a maximum of two currency amounts and one currency conversion rate are used to extrapolate monetary amounts in the use of chains of DSR and CDM messages.