Understanding Multicurrency Processing for Items

This topic discusses:

• Item entry.

• Maintenance worksheets.

• Automatic maintenance.

• Transfer worksheets.

Every item is associated with two amounts:

• An entry amount.

• A converted base amount.

Many pages that contain item amounts display (or offer the option to display) both of these amounts.

At any time, you can revalue open items and generate adjusting entries for the general ledger.

If an item is entered with a currency that is different from that of the business unit, then the system handles currency conversion automatically. The currency conversion is based on the rate type, the exchange rate, and the base currency of the business unit.