Currency systems

The currency system defines how amounts are calculated and registered. The following currency systems are available:

• The standard currency system

• Other currency systems from previous versions of LN:

  • The single currency system
  • The independent currency system
  • The dependent currency system

  The other currency systems are replaced by the standard currency system. For compatibility reasons, the other currency systems are still available. For more information, refer to Other currency systems.

Depending on the currency system selected, you can define the following types of currencies for a company:

• Home currency

  In a multicurrency system LN registers and reports amounts in the home currencies. You can define up to three home currencies:

  • The local currency
  • Two reporting currencies
• Reference currency

  The reference currency is the currency in which balances of entities shared by all the companies of a financial company group are expressed. For example, LN uses the reference currency for business partner balances.

  For currency systems other than the standard currency system, the reference currency is a company's base currency for all calculations with currencies.