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Feb 10, 2012 at 12:00 AM

When to use System Currency differnet from Local Currency?


Hi Forum,

I always thought, a system can generate any report in local currency anyways. For example a Canadian Company would have local currency as Canadian dollars and Indian company in Indian Rupees.

However, considering the fact, most international transactions are done in US dollars (or any other reason), we have the option of making System currency as US dollars. This way, it is possible to have all Financial and Accounting reports in two currencies that is Canadian dollars (local currency) and US dollars (which is system currency).

I always thought the option to have System Currency as another currency is a PLUS for getting reports in two currencies.

Of course we can have Customers and Vendors who use multi currencies and G/L accounts that have multi currencies for supporting currencies besides the Local and System Currency.

Here is the Question?

Are there situations where it is advantageous to have both Local and System Currency the same in my case Canadian Currency? Especially, from this perspective - What happens when this Canadian Company starts a subdivision in USA and the US company will have Local Currency as US dollars and their System Currency as Canadian Dollars. Now the two subdivisions have a different currency. Does that hinder in anyway. Is this an example to make that drives the fact a Canadian Company should always have Local and System currency as Canadian, because whenever US company comes along, the US company would be their local as US and System as Canadian, thus enabling the Canadian company to get what ever they want in System Currency.

Thanks for your contribution to this discussion.