The system uses the local currency level to calculate all entries.

 

•Unit level reports appear in local or reporting currency by selecting the appropriate currency in Reporting.

•The system converts the entries to reporting currency by using the appropriate foreign exchange rates.

•Consolidated and sub-consolidated level reports appear in local or reporting currency as long as all the units have the same assigned currency code.

•The system automatically computes a currency translation adjustment by using the foreign exchange rates entered in the unit. The currency translation adjustment appears in the appropriate reports.

 

Currency Types

•Functional Currency: Primary Currency in which the books of record are maintained. The currency in which an entity does business.

•Local Currency: Currency of the country where the business is physically located.

•Reporting Currency: Currency in which the entity reports financial statements. Reporting currency symbol options are US Dollar, Euro, and Japanese Yen. The default is US Dollar. It can be modified with a system parameter.

•Hyper inflationary Environment: When the cumulative rate of inflation exceeds 100% over the three year period, then FAS 52 requires USD to be the functional currency. The unit’s local currency should be set to USD.

 

Currency Options

•Currency Codes: There are pre-populated currency codes that can be expanded, as necessary, in the Manage Countries/Currencies screen.

•Thousands Separators: The system defaults to a comma (1,000.00) for the thousands separator. The comma can be changed to a period (1.000,00) with a system parameter.