Use of Currency code in G/L account

Finance and Operations/AX User Forum
1

Hi ,

In the G/L account - Currency code field is availble . Generally when you are maintaing the books , that should be in company currency only . then What is the use of the currency code field in G/L account, please explain with an business scenerio.

Thanks in Advance.

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Any updates ?

3

In Which scenerio we will assign the currency code for G/L account ?

4

The only use of currency code on ledger is that the same currency will be populated in journal lines when you use that ledger in General journal posting. There is not other use.

Pranav…

5

Thanks Pranav,

I hope you will provide me the correct answer .

Genberally company books will maintain the in the local currency based on the currency code configured in the company information tab .

My question is why we need to maintain the currency code against the G/L account ?[*-)]

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Ameen - Pranav answered this question - which part do you not understand when you read it back?

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My question is why we need to maintain the currency code against the G/L account ?Confused

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That is a option and not a mandatory field. If not required you can keep it blank.

Pranav…

9

It has been answered, just read what Pranav wrote.

IF you define this currency code, WHEN you enter this account onto a general journal the currency code is populated automatically, and therefore the value in the journal is in that currency unless changed.

10

Thanks for your help .

Hope i didnot explain my question properly or you did not get the question .

In Vendor card , customer card , bank card , we have currency code . When the vendor / customer belongs to other country then we will specify that currency code , when we do the transaction it will show the balance in that currency , where as our books in local currency .( G.ledger balances will show in Company currency Ex . INR)

Same way for Bank , where Company opened an account in other country , then we will assign that currency code to know the balances of in that currency , where as our books ( Bank ledger balances will show in local currency )

Now tell me the same why G/L account has the currency code and what is the use ?( Generally Company accounts will maintain in Local currency only) . If it is yes , then what is the point to have the currency code ? ( I am looking for a business scenrio to meet the requirement )

Online Help is not sufficient .

I hope explained the question very clearly.

11

You have an expense account that is directly entered into through a general ledger journal, this is used for overseas expenses where teh primary decalred currency is not your home currency. You do not receive an invoice for this, it is an expense account as such, say an employees expense. They always declare teh expense in a foreign currency, thereofre when you enter the general journal it defaults to the defined foreign currency to enable you to key the values in based upon teh reflected entry - on posting it converts it to your home currency. It is for ease of entry when a direct journal transaction is in a foregin currency. Take a bank account for bank adjustments posted directly to teh ledger not through the bank, take purchase or sales journals that are entered directly to the ledger.

12

Thanks Adam,

Actually i was trying to understand the G/L exchage adjustmnet batch job ( where i could able to understand the AP / AR exchange adjustment batch job ) . I though this currency code is link with G/L exchange adjustmnet batch job . Now i got that it is not at all link with G/L exchage adjustmnet batch job.

I request you to please tell me why we need to run the G/L exchange adjustment batch job ?

Please help me to understand the concept.

13

To revalue the ledger balances where they are made up on transactions of a foreign currency and the exchange rate moves.

The others impact on debtros/creditors reflected in home curerncy but do not impact on the ledgers.

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Thats why i wrote that the sole use currency code on ledger is to have default in journal line. It has to do nothing with currency adjustment.

Normally, it may happen that you may post some transaction directly to ledger thats why adjustment option is there is GL also as ultimately everything comes to GL.

Pranav…

15

When you run the AR/ AP exchange rate batch job , system will update the sub ledgers ( Customer ledger / Vendor ledger ) and General ledgers also .

Can you give one scenerio regarding the above statment ? because when run the AR/AP , system update Sub ledger / main ledger also . Then again why we need to run the G/L exchange rate adjustmnet batch job . This is what i am not understanding .

Please let me know.

16

Sorry only adjust exchange rates from Accounts Receivable and Accounts Payable or General Ledger. If, for example, exchange rates are adjusted for customers by using the Accounts Receivable module, do not at the same time adjust exchange rates in the General Ledger module. This means you impact is on AR, AP and GL or just GL so if you only want to impact on the GL run the GL one, if you want it to be adjusted at a customer and vendor level then do it there which will update teh GL so do not run the GL routine.

17

Thanks for the help ,

No , It will update immeditaly to Subledgers and main ledgers.

You mean to say with out updating the subledgers , just want to updagte the main ledgers , then need to run the G/L exchange rate adjustmnet .

Is it correct ?

18

Yes - try it.

19

Thanks alot Steven,

you really helped me alot about the confusion of exchange rate adjustment batch jobs. [:D]

How system will come to know that which accounts has to adjust . It means in P&L and BS , it has almost 2000 accounts .

So how system will come to know ?

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Please help me.