Understanding Multicurrency Setup for General Accounting

Multicurrency constants

Establish system basics, such as:

• Activate multicurrency.

• Allow multicurrency intercompany transactions.

• Determine which method to use for intercompany settlements.

Currency codes

Set up currency codes for each currency in which you transact business.

Automatic accounting instructions (AAIs)

Define which accounts the system updates for multicurrency accounting purposes, such as AAIs for unrealized gains and losses on monetary bank accounts and AAIs for posting balances by currency.

Multicurrency companies

For each company, assign a domestic currency code, determine whether to post account balances by currency, and specify a detailed currency restatement method.

Monetary accounts

Set up currency-specific accounts by assigning a currency code to each currency-specific (monetary) account.

Multicurrency ledger types

Review user-defined code (UDC) table 09/LT to ensure that the restatement ledger types are set up.