Journal Entry

You enter transaction amounts in USD for both companies 1 and 70, the transaction is domestic because the currency of the journal entry is the same as the company currency of the account on the first line of the entry.

This table shows how system creates entries in the AA (actual amounts) ledger:

Account	Amount	Ledger Type
1.1110.BEAR	–1,000.00	AA
70.1110.FRANCE	1,000.00	AA

The system identifies this journal entry as an intercompany transaction between two companies that have different base currencies and uses an exchange rate of 1. When the exchange rate is 1, the system also creates an entry for the transactions in the foreign currency (CA) ledger.

In the CA ledger, the value for company 70 (the French company) is the foreign amount (USD) of the transaction. The value for company 1 keeps the CA ledger in balance.

This table shows how the system creates entries in the CA ledger:

Account	Amount	Ledger Type
1.1110.BEAR	–1,000.00	CA
70.1110.FRANCE	1,000.00	CA