| # Currencies - overview You can use many different currencies in the transactions with your business partners. To register, calculate, and report amounts, LN converts the amounts to the company's home currency. You can use a multicurrency system to register amounts in more than one home currency. Types of currencies To convert foreign transaction currencies to a company's home currency, and to register amounts in different currencies, you can define these types of currencies: Home currencies Transaction currencies Reference currencies Currency format Different currencies require different presentations. The currency format determines the precision (number of decimals) LN uses to display amounts in the currency. Currency exchange rates LN converts the amounts between different currencies by using the currency exchange-rates that you define. Note If the transaction currency and the home currency are the same, no exchange rate is applied. LN copies the transaction amount to the home currency amount. Defining currencies Currencies are initially defined as generic units. For each unit, you must select the currency format. Next, you must specify the currencies used in each company of your multicompany environment. See To define currencies. Calculating currencies For details about how LN calculates the amounts that appear on the invoices, See Currency details. Multicurrency systems To use multicurrency accounting, you must set up a multicurrency system. Related topics Types of currencies To define currency rates Using currency exchange rate types To define currencies Currency details Currency systems |