Currency calculation and the standard currency system

In the standard currency system, LN can (re)calculate the statement currency in one of the following ways:

  • If the statement currency matches the home currency as defined in the calculation group, or if the local currency matches the statement currency, LN retrieves the historical amount (based on the historical date) and the current amount (based on the rate date) from the tfgld205 table. In short, no calculation takes place.

    See Example 1.

  • If the statement currency does not match one of the home currencies or if the calculation group specifies a currency other than the local currency, LN calculates:

    • The historical amount (based on the historical date) from the local currency into the reporting currency, using the rate as defined per statement account and the historical date taken from the year and period.
    • The current amount (based on current date) using the rate type as defined on the statement and the rate date as specified during processing of the statement.

    See Example 2.

Example 1
Statement currency=EUR
Home currencies=(USD, DKK, EUR)
Use Historical Rates=Selected
Calculation group indicates that position 3 (EUR) must be used
Rate type statement=FST

 

Amounts from tfgld205 in home currency: 1000 USD, 4455 DKK, 900 EUR

Resulting amounts:

Historical amount (used on the FST report)=900 EUR
Current amount=900 EUR
Gain and loss amount=0 EUR

 

Example 2
Statement currency=AED
Home currencies=(USD, DKK, EUR)
Use Historical Rates=Selected
Calculation group indicates that position 1 (USD) must be used. (Only position is allowed, because the statement currency is not one of the home currencies.)
Rate type statement=FST
Rate type account=FS2

 

Amounts from tfgld205 in home currency: 1000 USD, 4455 DKK, 900 EUR

Resulting amounts:

  • The historical amount (used on the FST report) in AED is calculated using:

    • The local amount (1000 USD)
    • The rate type of account: FS2

    • The rate date determined by the year and period of the tfgld205 record (last day of that period).

      If Use Historical Rates is cleared, the rate date as set during processing of the statement.

  • The current amount is calculated using:

    • The local amount (1000 USD)
    • The rate type of the statement: FST
    • The rate date as set during processing the financial statement.

  • The gain and loss amount is calculated:

    historical amount - current amount

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