<?xml version="1.0" encoding="utf-8"?>
<ManualTopic ID="/baanerp/tc/onlinemanual/000086" xml:lang="en">
   <Header>
      <Title>Dependent multicurrency system</Title>
      <Keyword type="header" order="d1e1448578">
         <Level1>Dependent multicurrency system</Level1>
      </Keyword>
   </Header>
   <GeneralSection>
      <Paragraph>You use a dependent
		multicurrency system in a stable currency environment. For example, if you have
		enterprise units in different countries or if you want to use <Link href="/baanerp/tf/glossary/glossary#MultiCurrenA_tf" role="glossary">multicurrency accounting</Link> for
		other reasons. When the Euro is introduced in Europe, European companies can do
		their accounting in both the local currency and the Euro by using a dependent
		multicurrency system.</Paragraph>
      <Paragraph>You can use a dependent
		multicurrency system in both a single site and a multisite (multiple country) ERP Enterprise environment.</Paragraph>
      <GeneralSection>
         <SectionTitle>Defining the currencies</SectionTitle>
         <Paragraph>The logistic and
		  financial companies in a dependent multicurrency environment must have the same
		  reference currency.</Paragraph>
         <Paragraph>For the logistic
		  company you must only define the reference currency. For the financial
		  companies, one of the home currencies must be the reference currency. The other
		  home currencies can be different.</Paragraph>
      </GeneralSection>
      <GeneralSection>
         <SectionTitle>Dependent calculation</SectionTitle>
         <Paragraph>In the logistic
		  company and the financial companies, you must define the exchange rate of each
		  external currency to the reference currency. ERP Enterprise converts all the
		  external currency amounts to the reference currency.</Paragraph>
         <Paragraph>In the financial
		  companies you must also define the internal currency exchange rates between the
		  home currencies. ERP Enterprise calculates and registers the amounts in the reference currency. ERP Enterprise then converts the
		  reference currency amounts to the other home currencies by using the internal
		  exchange rates.</Paragraph>
      </GeneralSection>
      <GeneralSection>
         <SectionTitle>Example of a dependent multicurrency system</SectionTitle>
         <Paragraph>Typically, you use a
		  dependent multicurrency system if the enterprise units of a single logistic
		  company reside in different countries. The enterprise units in each country
		  belong to the financial company defined for that country.</Paragraph>
         <Paragraph>For the logistic company (600) you must only define the
		  reference currency ($). The financial companies (610 and 620) must use this
		  same reference currency. You can choose the other home currencies of the
		  financial companies freely (DM and Euro for company 610, and FR and PTS for
		  company 620).</Paragraph>
      </GeneralSection>
   </GeneralSection>
   <RelatedTopics>
      <SectionTitle>Related topics</SectionTitle>
      <RelTopic>
         <Link href="/baanerp/tc/onlinemanual/000458" role="manual">Other currency systems</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/tc/onlinemanual/000459" role="manual">Standard currency system</Link>
      </RelTopic>
   </RelatedTopics>
</ManualTopic>