Understanding Monetary Accounts

For most general ledger accounts, you want the system to accept transactions in any currency. This is accomplished by not assigning a currency code to the account.

For those accounts in which you want to accept only transactions in a specific currency, you must assign a currency code to the account. These accounts are called monetary accounts. Monetary accounts are usually bank, or cash, accounts

For example, a Japanese organization has a company with a currency that is Japanese yen, and that company has a bank account that is Canadian dollars (CAD). If you assign CAD as the currency of that account, it becomes a monetary account and the system accepts only transactions in that currency.

The system stores currency codes for monetary accounts in the Account Master table (F0901).

Important:

Do not change an account from monetary to non-monetary, or vice versa, if any activity has been posted to the account. Changing the currency affects the integrity of the data.