Currency
The system uses the local currency level to calculate all entries.
- Unit level reports appear in local or reporting currency by selecting the appropriate currency in Reporting.
- The system converts the entries to reporting currency by using the appropriate Foreign Exchange Rates.
- Consolidated and sub-consolidated level reports appear in local or reporting currency as long as all the units have the same assigned ISO Currency Codes.
- The system automatically computes a currency translation adjustment by using the foreign exchange rates entered in the unit. The currency translation adjustment appears in the appropriate reports. See Foreign Currency Issues.
Currency Types
- Functional Currency: Primary Currency in which the books of record are maintained. The currency in which an entity does business.
- Local Currency: Currency of the country where the business is physically located.
- Reporting Currency: Currency in which the entity reports financial statements.
- Hyper inflationary Environment: When the cumulative rate of inflation exceeds 100% over the three year period, then FAS 52 requires USD to be the functional currency. The unit’s local currency should be set to USD.
Currency Options
- Currency Codes: There are pre-populated Currency Codes that can be expanded, as necessary, in the Manage Countries & Currencies screen.
- Thousands Separators: The system defaults to a comma (1,000.00) for the thousands separator. The comma can be changed to a period (1.000,00) with a System Parameters.