Ln FP5 Standard Currency [Archive]

ARijke

12th August 2009, 09:19

The standard currency system is replacing the previous ones. It covers the feature of the all the previous ones.

from the help:
Standard currency system
To meet the financial and tax reporting requirements of multinational companies with subsidiaries in many countries, the standard currency system in ERP LN offers:

Direct translation of foreign currency transactions
Foreign currency transactions are translated straight from the transaction currency to the local currency, without triangulation through the reference currency. By default, reporting currencies are directly translated from the transaction currency into the reporting currency. However, reporting currencies can also be translated from the local currency.

Integrations and multiple reporting currencies
Transactions can be recorded in one local currency and up to two reporting currencies. Only the local currency amounts are logged in the integration transactions, fixed assets, and reconciliation data. Before reporting in one of the reporting currencies, reconciliation of subledgers in the company’s local currency must take place. Adjustment of reporting currency balances for currency differences is supported by the Calculate Currency Differences (tfgld5201m000) session, which can be run for the local and the reporting currencies independently. For each of the home currencies the differences will be posted in separate transactions. Reconciliation of integration transactions on business object level is only possible in the local currency.

Multiple home currencies
A home currency is the local currency, or a reporting currency used by a company for preparing the financial statement. Amounts in foreign currency are translated into amounts in any of the home currencies by using direct currency rates for the local currency and, depending on the Translation Method setting in the Companies (tcemm1170m000) session, either the transaction, or the local currency amount for the translation into the reporting currency amounts.

Currency rotation
Rotate Currency functionality is available:
In General Ledger, ledger history and dimension history sessions.
In Accounts Payable and Accounts Receivable, sessions that display information on open items.
In these sessions, within a single company, Rotate Currency is available for every implemented home currency. Within a multicompany selection, Rotate Currency is available for every common currency, using reporting currency groups.
Because reporting currencies are translated according to predefined rules and rate types, currency rates for the reporting currencies cannot be modified during transaction entry.

Calculation and posting of currency differences
The Calculate Currency Differences (tfgld5201m000) session can be run for each home currency separately and independently. The currency differences calculation process also considers the exchange rate type, specified on the ledger account, for the local and the reporting currencies independently.
Currency difference transactions are always created for each home currency separately.
The method of calculating currency differences depends on the Translation Method setting in the Companies (tcemm1170m000) session.

Intercompany transactions
Intercompany transactions are reconciled in the transaction currency. For calculating the local and reporting currency amounts in intercompany transactions, only the transaction amount is used.
If required, in the standard currency system, intercompany accounts can be defined by transaction currency, meaning that the transaction currency determines to which intercompany account the transaction is posted.

Reference currency
In the standard currency system, the reference currency:
Can be defined independently of the local and reporting currencies.
Can be, but does not have to be, one of the home currencies.
Can be used to express amounts that represent amounts across multiple companies, for example, lot prices in Warehouse Management.

Hope this helps.
Regards, Adriaan