1. Multicurrency Processing Implementation Guide
  2. Understanding Journal Entries in a Foreign Currency

Understanding Journal Entries in a Foreign Currency

Multicurrency journal entries are foreign currency transactions that are entered in a currency that is different from the base currency associated with the company. When you enter a journal entry in a foreign currency, the system calculates the domestic currency amount. It retrieves the exchange rate from the F0015 table unless you override the rate on the Journal Entry form at the time of entry.

When you enter a journal entry, the system writes these amounts to the F0911 table:

  • Domestic amounts to the Amount field (GLAA) in the AA (actual amounts) ledger.

  • Writes Foreign amounts to the Foreign Amount field (GLACR) in the AA ledger and the Amount field (GLAA) in the CA (foreign currency) ledger. The system stores the same amounts in both fields.

If you use detailed currency restatement, the system also creates transactions in the XA (alternate) ledger. The ledger type indicates which ledger or set of books is updated by the transaction.