Understanding Domestic Versus Foreign Currency Transactions

The relationship between the base currency of a company and the transaction currency of a voucher determines whether the voucher is a domestic currency transaction or a foreign currency transaction.

When you enter a voucher, the currency of the company determines the base (domestic) currency of a voucher, whereas the currency of the voucher determines the transaction currency.

To process vouchers in multiple currencies, you must assign a domestic currency code to every company in the Company Names & Numbers program (P0010). The currency code of a company determines the base currency of the voucher during voucher entry.