This chapter contains the topic:
Businesses operating in an inflationary market need to be able to maintain a set of books in two currencies, the local currency and a stable currency, commonly U.S. dollars. The Stock Valuation system allows a business to value inventory based on a valuation method, such as LIFO or FIFO. With Dual Currency in Inventory, a second ledger type (XA) allows a business to adjust its inventory in both the domestic and the stable currency.
Dual Currency in Inventory works with multi-currency accounting, which allows you to do business in multiple currencies and follow the reporting and accounting requirements of the corresponding countries. You must set up multi-currency in order to use Dual Currency in Inventory.
The system maintains dual currency for inventory layers by creating an additional ledger for the stable currency, using the current exchange rate to calculate the amount. The system writes a record for each currency in the Stock Valuation tables. For example, when data is extracted from the Cardex, two records are written, one containing the domestic currency amounts and one containing the stable currency amounts.
See Also:
Overview to Multi-Currency in the JD Edwards World Multi-Currency Guide,
Set Up Multi-Currency in the JD Edwards World Multi-Currency Guide,
Section 9.4, "Assigning Valuation Methods" for setting up dual currency in inventory.