What Is Multiple Currency Application?
Multiple currency application allows you to process transactions when company base, transaction, and payment currencies are all different.
There are three application types:
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Mixed Non-base Currency Application
Note: The Application Currency Type field ARA-APP-CURR (Unix/Windows) or DARAAPPCRR (IBMi) in the AR application file: ARAPPLIED (Unix/Windows) or DBARARA (IBMi) tracks the application type. The value is stored as B (base), N (non-base), or M (mixed, which is any combination where either company bases differ or transaction currencies differ).
The examples that follow have these translations:
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FFR - CAD
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USD - CAD
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There is no translation rate defined for USD - FFR
Base Currency Application
The following figure shows a base currency payment applied to a base currency invoice.
Non-base Currency Application
The following figure shows a non-base currency payment applied to an invoice in the same non-base currency.
Mixed Non-base Currency Application
The following figure shows a non-base currency payment applied to an invoice in a different, non-base currency.
Because there is no translation rate defined for United States dollars (USD) to French francs (FFR) in this example, additional currency translation is required as shown in the following figure.
For the mixed non-base currency application option, the French franc (FFR) invoice is converted to display as the equivalent amount of Canadian dollars (CAD) for a non-base currency application.
Example: Mixed Non-base Currency Application
In the following example, a company with a base currency of U.S. dollars (USD) creates an invoice in French francs (FFR). For the purposes of the example, assume that a translation rate between French francs and U.S. dollars is not defined in the Lawson Currency application. However, translation rates between French francs and Canadian dollars and between Canadian dollars and U.S. dollars are defined. Using these relationships, the open amount displays in Canadian dollars.
| Company base currency | United States Dollars (USD) |
| Payment currency | Canadian Dollars (CAD) |
| Invoice currency | French Francs (FFR) |
For the Mixed Non-base application option, the French franc (FFR) invoice is converted to display as the equivalent amount of Canadian dollars (CAD) for a non-base application, as shown in the following example.
The invoice amount is translated from the invoice currency to the payment currency.
| FFR to CAD exchange rate on invoice date | 1:0.2346 (FFR:CAD) |
| Invoice amount in invoice currency | 10,000 FFR |
| Invoice amount in payment currency | 2,346 CAD |
A payment amount of 2,346 Canadian dollars is needed to fully close the invoice.