This chapter contains the topic:
You can use the multi-currency functionality in JD Edwards World software to maintain account balances and invoices in domestic and foreign currency amounts.
When you set up your system, you define a currency for your company and for your customers and suppliers. The system recognizes the currency that you define for your company as the domestic currency. The system recognizes any customer or supplier currencies that are different from your company's currency as foreign currencies. Finally, the system determines foreign and domestic amounts based on exchange rates that you define for specific effective date ranges.
As you build a global customer network, you can use the JD Edwards World Contract Billing system to optimize your revenue recognition and billing processes in multi-currency environments. When you use multi-currency with the Contract Billing system, you can:
Accumulate billable costs that originate in multiple currencies, such as the costs for employees' time
Apply markup amounts to costs in either the domestic or foreign currency
Generate invoices for your customers in a currency (foreign) that is different than the currency (domestic) of the contract
The Contract Billing system uses a contract as the basis for an invoice. The system recognizes the currency of the company that is responsible for the contract as the domestic currency.
While the currency that you define for your customer might be different than the currency you set up for your system (domestic currency), you manage the contract in the domestic currency. Then, when you generate an invoice for the contract, the system creates the invoice using the currency of the customer (foreign currency).