Bank Account's Monetary Unit

When you select the Bank Account's Monetary Unit method, the currency in which you pay vouchers depends on whether the bank account assigned to the voucher is a monetary or non-monetary account. This table describes these types of bank accounts:

Type of Bank Account	Description
Monetary bank account	A monetary bank account is an account that is assigned a currency code. For vouchers assigned a monetary bank account, you pay in the currency of the bank account. For example, you enter a foreign currency voucher in CAD for a company that has a base currency of USD. The bank account that you assign to the voucher is a monetary account with a currency code of CAD. If you select the Bank Account's Monetary Unit method, you pay the foreign amount of the voucher in the foreign currency (CAD). The system might calculate a gain or loss between the foreign and domestic currency amounts based on: The GL date specified in the processing option for the Work with Payment Groups program. The system uses this date to locate the exchange rate in the F0015 table. The exchange rate effective date specified in the processing option for the Work with Payment Groups program. If you leave this processing option blank, the system uses the GL date.
Non-monetary bank account	A non-monetary bank account is an account that is not assigned a currency code (the currency code for the bank account is blank). For vouchers that are assigned a non-monetary bank account, you pay the foreign amount of the voucher in the domestic currency. For example, you enter a foreign currency voucher in CAD for a company that has a base currency of USD. The bank account that you assign to the voucher is not a monetary account. If you select the Bank Account's Monetary Unit method, you pay the domestic amount of the voucher in the domestic currency (USD). The system does not calculate a gain or loss because the voucher is paid in the domestic currency.

Type of Bank Account

Description

Monetary bank account

A monetary bank account is an account that is assigned a currency code. For vouchers assigned a monetary bank account, you pay in the currency of the bank account.

For example, you enter a foreign currency voucher in CAD for a company that has a base currency of USD. The bank account that you assign to the voucher is a monetary account with a currency code of CAD. If you select the Bank Account's Monetary Unit method, you pay the foreign amount of the voucher in the foreign currency (CAD).

The system might calculate a gain or loss between the foreign and domestic currency amounts based on:

The GL date specified in the processing option for the Work with Payment Groups program. The system uses this date to locate the exchange rate in the F0015 table.
The exchange rate effective date specified in the processing option for the Work with Payment Groups program. If you leave this processing option blank, the system uses the GL date.

Non-monetary bank account

A non-monetary bank account is an account that is not assigned a currency code (the currency code for the bank account is blank). For vouchers that are assigned a non-monetary bank account, you pay the foreign amount of the voucher in the domestic currency.

For example, you enter a foreign currency voucher in CAD for a company that has a base currency of USD. The bank account that you assign to the voucher is not a monetary account. If you select the Bank Account's Monetary Unit method, you pay the domestic amount of the voucher in the domestic currency (USD).

The system does not calculate a gain or loss because the voucher is paid in the domestic currency.