| # Dependent multicurrency system 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 multicurrency accounting 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. You can use a dependent multicurrency system in both a single site and a multisite (multiple country) LN environment. Defining the currencies The logistic and financial companies in a dependent multicurrency environment must have the same reference currency. 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. Dependent calculation In the logistic company and the financial companies, you must define the exchange rate of each external currency to the reference currency. LN converts all the external currency amounts to the reference currency. In the financial companies you must also define the internal currency exchange rates between the home currencies. LN calculates and registers the amounts in the reference currency. LN then converts the reference currency amounts to the other home currencies by using the internal exchange rates. Example of a dependent multicurrency system 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. 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). Related topics Other currency systems Standard currency system |