<?xml version="1.0" encoding="utf-8"?>
<ManualTopic ID="/baanerp/tf/onlinemanual/cri000320" xml:lang="en">
   <Header>
      <Title>Logistic area</Title>
      <Keyword type="header" order="d1e2132256">
         <Level1>Currency Initialization</Level1>
         <Level2>logistic area</Level2>
      </Keyword>
      <Keyword type="header" order="d1e2132262">
         <Level1>Logistic area</Level1>
         <Level2>Currency Initialization</Level2>
      </Keyword>
   </Header>
   <GeneralSection>
      <Paragraph>The financial results of the activities that are carried out in
		a logistic company, such as production, purchase of materials, and the sales of
		the product, are posted in financial companies. Logistic companies contain
		enterprise units, which are linked to financial companies for their financial
		reporting. In this way, the logistic and financial companies are linked to each
		other via the enterprise units.</Paragraph>
      <Paragraph>The logistic and financial companies that have links with each
		other form a logistic area. Internal currency initialization is performed for
		all the companies within a logistic area. After internal currency
		initialization, all the companies must comply with the rules of the resulting
		currency system.</Paragraph>
      <List>
         <ListIntro>These rules apply to the companies within a logistic area:</ListIntro>
         <ListItem>An organization can have more than one logistic company
		  (multisite). Each logistic company contains one or more enterprise units.</ListItem>
         <ListItem>Each enterprise unit is linked to one financial company.</ListItem>
         <ListItem>The reference currency must be the same for all financial
		  companies that are linked to the enterprise units of one logistic
		  company.</ListItem>
         <ListItem>A financial company can be linked to enterprise units in
		  different logistic companies.</ListItem>
         <ListItem>Logistic companies that have common financial companies linked
		  to their enterprise units must use the same currency system and the same
		  reference currency.</ListItem>
         <ListItem>The currency system and the reference currency of a logistic
		  company are independent of other logistic companies to which it is not linked
		  via the enterprise units. Note that in that case, the companies are not visible
		  in each other’s environment as defined in the <GUIRef href="/baanerp/tc/emm/tcemm1170m000" role="session">Companies (tcemm1170m000)</GUIRef> session.</ListItem>
      </List>
   </GeneralSection>
</ManualTopic>