Understanding Multicurrency Processing for Items

When you enter pending items online, you provide an entry amount and currency for each pending item. If the entry currency is different from the business unit base currency, the system calculates the conversion and displays both amounts. Conversion uses the currency rate type from the customer or from the business unit. For groups of pending items, you can constrain all pending items to a selected currency; or you can leave multicurrency items in a single group with the totals represented by hash marks (#). Group balancing is based on the entry amount.

Billing systems may produce groups that contain invoices in multiple currencies, so you have the option to specify a currency for the group or to leave the currency code blank and then specify the currency code on the individual item. Currency conversion can occur before the interface or when you run the Receivables Update Application Engine process (ARUPDATE).

Worksheet totals are in the anchor currency. The system calculates realized gain or loss information for partially and completely offset items using the items' entry and base currencies.

You can select items on the maintenance worksheet in any currency. When the first item is selected, that item's currency becomes the anchor currency for the worksheet. Optionally, you can establish an anchor currency before the first item is selected on the worksheet.

On a maintenance worksheet with multiple currencies, if a rounding difference exists when the system converts amounts, the Receivables Update process posts any leftover amounts using the rounding account code that you assigned to the business unit on the Receivables Definition - Accounting Options 1 page.

The Automatic Maintenance process converts item amounts to a common currency and uses that currency for the anchor currency for maintenance worksheets that it creates. The system calculates realized gain or loss information for partially and completely offset items using the items' entry and base currencies.

If a rounding difference exists when the process converts amounts, the Receivables Update process posts any leftover amounts using the rounding account code that you assigned to the business unit on the Receivables Definition - Accounting Options 1 page.

Transfers can involve more than one currency, so the actual totals that display at the bottom of the worksheet are represented by hash marks (#). The system uses the original exchange rate and rate type for transfers when the base currency is the same. No realized gain or loss occurs as the result of a transfer.