Currencies - overview
You can use many different currencies in the transactions with your business partners. To register, calculate, and report amounts, LN converts the amounts to the company's home currency. You can use a multicurrency system to register amounts in more than one home currency.
Types of currencies
To 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
- Transaction currencies
- Reference currencies
Currency format
Different currencies require different presentations. The currency format determines the precision (number of decimals) LN uses to display amounts in the currency.
Currency exchange rates
LN converts the amounts between different currencies by using the currency exchange-rates that you define. The multicurrency system used by the company determines the exchange rates that you must define.
Defining currencies
Currencies are initially defined as generic units. For each unit, you must select the currency format. Next, you must specify the currencies used in each company of your multicompany environment. See Defining currencies.
Calculating currencies
For details about how LN calculates the amounts that appear on the invoices, See Currency details.
Multicurrency systems
To use multicurrency accounting, you must set up a multicurrency system. The currency system of a company determines how amounts are calculated and registered.
Currency initialization
Currency Initialization (CRI) allows you to adapt your organization’s currency system to changing needs for the internally used currencies. This user guide includes an outline of the currency initialization procedure. For comprehensive information about currency initialization, see the Infor LN Financials User Guide for Currency Initialization (CRI).