Dependent multicurrency system

A multicurrency system is typically used by companies that operate in countries using different currencies, or that require reports in multiple currencies.

You can use a dependent multicurrency system in both a single company and a multicompany (multiple country) LN environment.

Defining the currencies

The logistic and financial companies in a dependent multicurrency environment must have the same reference currency.

For the logistic company you must only define the reference currency. For the financial companies, one of the home currencies (the local or the reporting currencies) must equal the reference currency. The other home currencies can be different. You can select up to three home currencies.

In a logistic company, the local currency of the financial company that is linked to one of its enterprise units is used to store amounts.

Dependent calculation

In the logistic company and the financial companies, you must define the exchange rate of each external currency to the reference currency. LN converts all the external currency amounts to the reference currency.

In the financial companies, LN stores all transaction amounts in all the home currencies. The transaction amounts are first converted into the reference currency, and then the transaction amounts in the reference currency are converted into the other home currencies. In numerous sessions, you can rotate the currency.

In the financial companies you must also define the internal currency exchange rates between the home currencies. LN calculates and registers the amounts in the reference currency. LN then converts the reference currency amounts to the other home currencies based on the internal exchange rates.