When is Triangulation Match used?
Triangulation Matching is only used if an Exact Match or Inverse Match cannot be found that meets the specified criteria. Exact Match and Inverse Match are equally weighted so if an inverse record exists with a date close to the specified effective date, it will be used instead of the Exact Match.
How does Triangulation Matching work?
An exchange rate is needed for CNY to EUR but no currency match is identified. Triangulation matching is possible if there the following exchange rates are available:
From currency to the System/Base currency (CNY to USD) - Note: even when there is a From Currency to the System currency, the system will use the inverse of System/Base Currency to the From Currency (1/USD to CNY e.g. 1/6.881827) for the triangulation
System/Base currency to the To Currency (USD to EUR e.g. 0.891787)
The CNY to EUR rate is calculated as follows:
Inverted Match * Exact Match = (1/USD to CNY) * (USD to EUR) = 1.295860
Triangulated Match - e.g. An exchange rate is needed for CNY to EUR. No currency match is identified, but an exchange rate can be found using two rates that are available:
From currency to the System/Base currency (CNY to USD) - Note: even when there is a From Currency to the System currency, the system will use the inverse of System/Base Currency to the From Currency (1/USD to CNY e.g. 1/6.881827) for the triangulation
System/Base currency to the To Currency (USD to EUR e.g. 0.891787)
The CNY to EUR rate is calculated as follows:
Inverted Match * Exact Match = (1/USD to CNY) * (USD to EUR) = 1.295860
What is required for triangulation to work?
It is important that rates should be imported with a minimum of 6 significant figures to avoid any conversion discrepancies when triangulation is performed.
Triangulation will only use records where the base currency is equal to the company/system currency.