Rate information

For a transaction, LN determines the currency rate to be used according to the rate information.

The rate information consists of these details:

• Rate type
• Rate date
• Currency rate
• Rate factor

In addition to the rate information, the currency rate used for the generated invoice and the postings in the general ledger depends on the value of the Currency Rate Determiner of the purchase order.

The rate determiner is a mandatory compression criterion, therefore, the rate determiner is the same for all the order lines combined on the invoice. If the value of the rate determiner is other than Document Date, each related order line is posted with its own rate information on the invoice accrual account. In this case, the rate information of the order line is the same as the rate information on the purchase order header. Consequently, the involved invoice accrual account is increased by the receipt and decreased by the generation of the self-billed invoice with the same rate information. Therefore, no currency differences postings occur in the integration transactions. The rate information of the invoice and the control account posting is the average rate of all the related invoice accrual postings.

If the rate determiner is Document Date, all the postings are made with the currency rate that is effective on the document date of the invoice. Consequently, every invoice accrual posting can create a Currency Difference entry in the integration transactions. The Currency Difference entry results from the difference between the purchase order header rate information and the rate information effective on the invoice document date.