Currency calculation and the dependent currency system

In the dependent currency system, LN (re)calculates the statement currency from the transaction currency (defined in the calculation group) via the reference currency to the reporting currency. The first step uses the rate type as defined on the statement account; the step from reference to a reporting uses the internal rate type. The calculation of the currency gain and loss is the same as the calculation as described for the standard currency system.

Example
Statement currency=CAD
Home currencies=(EUR, USD)
Reference currency=EUR
Use Historical Rates=Selected
Calculation group indicates that position 2 (USD) must be used
Rate type statement=FST
Rate type account=FS2
Internal rate=INT

 

Amounts from tfgld205 in home currency: 1200 EUR, 1258.56 USD

Resulting amounts:

  • The historical amount (used on the FST report) in CAD is calculated in two steps:

    1. The amount in Euro is calculated using:

      • The reporting 2 amount (1258.56 USD)
      • Internal rate INT
      • The rate date determined by the year and period of the tfgld205 record (last day of that period) or, if Use Historical Rates is cleared, the rate date as set during processing of the statement.

    2. The amount in CAD is calculated using:

      • The amount in Euro calculated in the previous step (1200.00 EUR).
      • 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 also calculated in two steps:

    1. The amount in Euro is calculated using:

      • The reporting 2 amount (1258.56 USD)
      • Internal rate INT
      • The rate date as set during processing of the statement.

    2. The amount in CAD is calculated using:

      • The amount in Euro calculated in the previous step (1200.00 EUR).
      • The rate type of statement FST.
      • The rate date as set during processing of the statement.

  • The gain and loss amount is calculated:

    historical amount - current amount

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