Hi ,
System administration > Setup > System parameters.- > System currency .
What is the use of System currency ?
It is the base currency of the company.
Then what about the Accounting currency in the Ledger form in AX 2012 .
GL - > Setup - > Ledger - > Accounting currency .
What is the difference between System currency Vs Accounting currency .?
Select the currency to use. You can define a default currency for each ledger that you set up in the Ledger form.
This currency is used only to consolidate amounts in General ledger that have been posted in different currencies from various legal entities.
What is the difference between System currency Vs Accounting currency .?
Hi Lally,
System currency is the default currency and is used only to consolidate amounts in General ledger that have been posted in different currencies from various legal entities.
Accounting currency is what your legal entity uses for amounts calculation. It is unique per the legal entity.
Reporting currency is the currency used for operational reporting to the government bodies.
Hi Kiran ,
What it comes to consolidation process also , we need to create the consolidation company and need to define the Accounting currency and reporting currency .
then what is point of this System currency ?
System currency is global to AX system irrespective of how many legal entities you have and what currencies each of them have as Accounting/Reporting currencies. Its basically systems default parameter.
Consider you have a company operating in 3 legal units (US, India, Canada).
Legal unit 1: Accounting currency: USD, Reporting currency: USD (US)
Legal unit 2: Accounting currency: INR, Reporting currency: INR (India)
Legal unit 3: Accounting currency: USD, Reporting currency: CAD (Canada)
Now the System currency is the currency in which we consolidate all the GL posted amounts from different legal units/entities and present in one currency. Say for example: USD. Hope you got the difference [:)]
How would you consolidate the all the 3 different posted amounts in ( USD , INR ) to USD currency ( as per system currency ) ?
Yes. As per system currency only. Which in this case is: USD.
Hi Kiran ,
My question is how would you consolidate the different companies G/L transactions ( without creating the consolidation company ) ?
Thanks in advance.
Sorry I did not change to work on the consolidation process.
Sorry I did not get a chance to work on the consolidation process.
Hi Lally,
You can use any of the legal entity as consolidated company by just enabling the ‘Use for financial consolidation process’ field in the legal entities form and perform consolidation from GL=> Periodic=> Consolidation.
Following links might help you understand the concept better.