Dependent multicurrency systemA multicurrency system is typically used by companies that operate in countries using different currenies, or that require reports in multiple currencies. You can use a dependent multicurrency system in both a single company and a multicompany (multiple country) LN environment. Defining the currencies The logistic and financial companies in a dependent multicurrency environment must have the same reference currency currency. For the logistic company you must only define the reference currency. For the financial companies, one of the home currencies must be the reference currency. The other home currencies can be different. Dependent calculation In the logistic company and the financial companies, you must define the exchange rate of each external currency to the reference currency. LN converts all the external currency amounts to the reference currency. In the financial companies you must also define the internal currency exchange rates between the home currencies. LN calculates and registers the amounts in the reference currency. LN then converts the reference currency amounts to the other home currencies by using the internal exchange rates. Example of a dependent multicurrency
system Typically, a dependent multicurrency system is used if the enterprise units of a single logistic company reside in different countries. The enterprise units in each country belong to the financial company defined for that country. Enterprise ABC Ltd is located in London, UK. There are two branch offices, SWE and NW. SWE is located in Stockholm, Sweden and NW is located in Oslo, Norway. The main office in London and the branches use GBP as the reference currency. In addition to the reference currency, SWE's home currency is SEK, and NW's home currency is NOK. This table shows how Enterprise ABC Ltd is set up in LN.
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