Multiple currencies and consolidation

When you use multiple currencies in a consolidated environment, be aware of these requirements:

• The base (domestic) currency must be the same at all sites reporting to an entity. However, you may set up the sites so they can maintain their own currency exchange rates - or you may want to maintain the rates only at the entity. See Replicating shared currency.
• In each entity's Chart of Accounts, the currency translation method and the exchange rate type are specified for each account. To comply with FASB52 or GAAP standards, revenue and expense accounts should use the Average translation method, and asset and liability accounts should use the End translation method. You can exclude Owner's Equity accounts from being revalued by setting the Account Class in the Chart of Accounts form to Equity - Non-Monetary.
• The currency table of the entity is the one used for translation during the consolidation. Sites use the domestic currency of their entity, so there is no currency translation at this level.