Using currency exchange rate types

In the Exchange Rate Types (tcmcs0140m000) session, you must define at least one exchange-rate type for a company.

In the Companies (tcemm1170m000) session, you can select the company's default exchange rate types to be used for sales transactions, purchase transactions, internal calculations, and various types of reports that you must submit to the authorities.

You assign currency exchange-rates to a currency exchange-rate type in the Currency Rates (tcmcs0108m000) session.

Default company exchange rates

In the Companies (tcemm1170m000) session, you can select the company's default exchange rate types to be used for sales transactions, purchase transactions, internal calculations, and external reporting.

Reporting rate types

In the Ledger Account Settings by Individual Account (tfgld0128m000) session, you can define exchange rate types to be used for reporting.

Business partner exchange rates

You select a currency exchange-rate type for an invoice-to or invoice-from business partner in the Invoice-to Business Partner (tccom4112s000) or the Invoice-from Business Partner (tccom4122s000) sessions.

Transaction exchange rates

You must select default currency exchange-rate types for a company's sales, purchase, and internal transactions in the Companies (tcemm1170m000) session.

Internal exchange rates

LN uses the internal exchange rates to convert amounts of all transactions other than sales and purchase transactions. In a dependent multicurrency system, LN also uses the internal exchange rates for standard cost calculations.

External exchange rates

In all EU countries, for the European sales listing and the Intrastat report, foreign currency amounts must be converted to the local currency amounts, which are often in euros.

The rules for the currency rates to be used can differ between the countries. In some countries it is allowed to use your internal company rates and in other countries you have to use specific exchange rates, for example, the rates used by the European Central Bank.

For each financial company, you can select the default external exchange rate that must be used, for example, for the Intrastat report, in the Companies (tcemm1170m000) session. The EU tax handling sessions are set up in such a way that you can generate the amounts to be reported both as internal values for your own audits, using the transaction exchange rates and as declaration values using the prescribed external exchange rates. For details, refer to Using the external exchange rate type.

Multicompany exchange rate types

The companies of a multicompany structure must share the exchange rate types (tcmcs040) table. You must select the same default currency exchange-rate types for the company's sales, purchase, and internal transactions in the Companies (tcemm1170m000) session.