Uses of report currencies in General Ledger

You can assign up to two report currencies to a General ledger company. A report currency cannot be the same as the company base currency.

Transaction amounts are always converted to the base currency when they are entered or interfaced to the General Ledger. If you also use a report currency, then the transaction amounts are converted to both the base and report currency. If you use two report currencies, then the transaction amounts are converted to all three currencies (base, report currency one, and report currency two). Report currency balances are immediately accessible for viewing and reporting.

In addition, you can revalue and translate report currencies in the same manner as the company base currency. You can also create journal entries for report currencies only. These journal entries do not include base or transaction amounts.

You can also remove a report currency and its balances from a company and replace it with a different report currency.

Example

Company XYZ Corporation is based in the United States with a base currency of US Dollars. XYZ Corporation has district offices located in France and Canada that require separate financial reporting, but must eventually translate amounts to US Dollars for consolidated reporting.

You can set up the Euro and the Canadian Dollar as report currencies to track and report amounts for those offices, while continuing to track and report amounts in US Dollars, eventually creating a consolidated report for XYZ Corporation in US Dollars.