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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.

How to: Define 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

See Also

Tasks

How to: Update Exchange Rates

Concepts

Set Up Invoice Rounding

Other Resources

Adjust Add. Reporting Currency