Set Up Currency Application Rules
You can allow transactions in different currencies to be applied to one another, for example, if you record a purchase order in one currency and then make the corresponding payment in a different currency. You can:
Allow all currencies to be applied to one another,
Prohibit applying any currencies to one another, or
Specify a group of Economic and Monetary Union (EMU) currencies that can be applied to one another.
When you apply entries in different currencies to each other, there may be a difference between the two amounts when they are converted to LCY. You can specify how large of a difference you will allow, so that the entries can be closed. The difference will then be posted as a rounding difference.
The following table describes a sequence of tasks, with links to the topics that describe them. These tasks are listed in the order in which they are generally performed.
| To | See |
|---|---|
Allow payments in one currency to be applied to purchases in another currency. |
How to: Allow for Application of Vendor Ledger Entries in Different Currencies |
Allow receipts in one currency to be applied to sales in another currency. |
How to: Allow for Application of Customer Ledger Entries in Different Currencies |
Specify which currencies are EMU currencies. |
|
Set up the general ledger accounts where rounding differences will be posted when you apply different currencies to each other. |
How to: Set Up General Ledger Accounts for Currency Application Rounding Differences |
Close entries applied in different currencies and post the rounding differences. |
How to: Allow for Rounding Differences When You Apply Entries in Different Currencies |