Foreign Currency Amortization

You can amortize the foreign currency amounts rather than the base currency amounts of transactions. For example, your base currency is USD. You purchase five laptops for your London office and pay for them in British pounds (GBP.). You want to amortize the prepaid assets in GBP, the foreign currency. You use a foreign currency amortization schedule to calculate the amortization amounts based on the foreign currency rather than the base currency.

With foreign currency amortization schedules you can:

• Amortize balances in any transaction currency, including transactions denominated in a currency other than the functional or base currency of a subsidiary.

• Create journal entries using the historical transaction exchange rates.

• Associate foreign currency amortization schedules on vendor bills, bill credits, and journals.

For more information about working with foreign currency amortization and how it differs from standard amortization, see:

• Setting Up Foreign Currency Amortization

• Using Foreign Currency Amortization

• Foreign Currency Amortization Examples

General Notices