Types of currenciesTo convert foreign transaction currencies to a company's home currency, and to register amounts in different currencies, you can define these types of currencies:
Home currencies A company’s home currencies are the base currencies that the company uses to express and register all amounts internally. An LN company can use up to three internal home currencies. In addition to the home currencies, a company uses external currencies for the transaction with business partners. You must select a company’s home currencies in the Companies (tcemm1170m000) session. These types of home currencies are available:
Reference currency For all currency systems except the standard currency system, you must select one of the home currencies as the reference currency. In the standard currency system (default), the reference currency:
For currency systems other than the standard currency system, the reference currency is a company’s base currency for all calculations between currencies. LN uses the reference currency to convert amounts from the transaction currency to the home currencies in these multicurrency systems:
In independent multicurrency systems, LN converts the transaction amounts directly from the transaction currency to the home currencies. Note All companies of a multicompany structure must use the same reference currency. Transaction currencies In addition to the home currencies, companies use a number of transaction currencies, which are the currencies used for transactions with your business partners. For example, these amounts are expressed in transaction currencies:
You can select a default transaction currency for each business partner.
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