Show TOC

Object documentationExpress Configuration: Step 2 - Defining Currencies and Exchange Rate Postings Locate this document in the navigation structure

 

Use this window to define currency-related information.

Note Note

The settings displayed in this window depend on the localization of the SAP Business One application that you are using. Not all settings are relevant for all localizations.

End of the note.
Local Currency

Select the local currency. The currencies defined in SAP Business One are available in the list. To define a new currency, select Define New.

System Currency

SAP Business One can manage all transactions in a system currency parallel to the local currency. Select the required system currency from the list. To define a new currency, select Define New.

If defining a system currency that is not identical to the local (national) currency, the system currency can be used as the reporting currency. For example, the corporate group requires a different reporting currency from the national currency. Also define a daily exchange rate for the system currency. Every document, and all reports and balance sheets are posted in the database in both currencies.

If you do not have a reporting requirement in another currency, set the system currency to your local currency.

Default Account Currency

Determines the default account currency for new accounts:

  • Local Currency: Transactions can be posted only in the defined local currency.

  • All Currencies: Transactions can be posted in all currencies defined in the company database; however, balances, totals, and reconciliations are calculated and displayed in local currency only.

Exchange Rate Posting

Determines the display of exchange rates in SAP Business One. The exchange rate values are always saved in the system according to the direct rate. The indirect rate is for display use only.

This setting affects the calculation that you use to enter the exchange rates in the Exchange Rates and Indexes window.

  • Select Direct to display the exchange rate according to the local currency (that is, the local currency price of one unit of a foreign currency).

  • Select Indirect to display the exchange rate according to the foreign currency (that is, the foreign currency price of one unit of a local currency).

Note Note

This setting is updated per company, for all users, after the next logon, but cannot be changed after transactions are recorded in the company.

End of the note.

Example Example

The local currency is the US dollar and the foreign currency is the Canadian dollar. Today's rates are USD 1 = CAD 2.

If you chose the Direct option, then on the Exchange Rates tab of the Exchange Rates and Indexes window, you would enter 0.5 as today's rate for the Canadian dollar rate.

If you chose Indirect, to indicate how many Canadian dollars are in one US dollar, you would enter 2 as today's rate for the Canadian dollar rate.

End of the example.
Display Credit Balance with Negative Sign

Select to display credit balances with a negative sign. According to the default settings, debit balances are displayed with a negative sign. This option cannot be changed after postings have been created in SAP Business One.

This setting influences the entry of beginning balances for the G/L accounts and business partners. Depending on this setting, the opening balances must be entered as positive or negative numbers. We recommend accepting the default setting, as this reflects the local requirements.

Allow Negative Amounts for Reversal Transaction Posting

Note Note

This field is not available for the Brazil and Israel localizations.

End of the note.

Selecting this option results in journal entries where the reversal is booked with negative amounts. If you do not select this option, the journal entry of the reversal is booked using a debit/credit switch. This setting can be changed at any time.

Example Example

A return or credit memo with a positive document total is booked with negative amounts.

A cancellation document of a delivery with a positive document total is booked with negative amounts. However, a cancellation document of a return with a positive document total is also booked with positive amounts. For more information about canceling marketing documents, see Canceling Documents with Cancellation Documents.

End of the example.