System currency VS accounting currency

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Hi ,

System administration > Setup > System parameters.- > System currency .

What is the use of System currency ?

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 .?

All Replies
  • 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.

  • Thanks for the reply.

    I am looking for the answer System currency Vs Accounting currency ?

    Does any one throw some help ?

  • Hi Lally,

    The accounting currency is the currency per legal entity used for accounting. This will default in most cases your transactions and new master data like customers.

    The system currency is - like the name - system wide. In some rare scenarios this currency code will be used in stead of the accounting currency.

    These scenarios are:

    - Purchase requisitions as these are global and not company specific.

    - BI initializations for cubes.  

    kind regards,

    André Arnaud de Calavon  |  Microsoft Dynamics AX Solution architect  |  My blog  |  My company

    This post is my own opinion and does not necessarily reflect the opinion or view of my company, Microsoft, both its employees, or other MVPs.

  • Hi Andre ,

    Still i am not clear about the  System currency .

    You mentioned "The system currency is - like the name - system wide. In some rare scenarios this currency code will be used in stead of the accounting currency.

    Could you explain bit more with an example of System currency ?

  • Hi Lally,

    I don't know of a good example, but below is another description of system currency for your reference:

    (From Technet - technet.microsoft.com/.../gg731914.aspx):

    ---------------------------

    System 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.

    Note

    Currencies will not be available until you set up General ledger parameters for your legal entity.

    ---------------------------

    My blog | PBC

    This forum post is my own opinion and does not necessarily reflect the opinion or view of Microsoft, its employees, or other MVPs.

  • Hi Lally,

    If you have an Enterprise organisation with legal entities over the world, you can setup a system currency and a currency for accounting per company.

    The system currency could be USD.

    Company A has a accounting currency USD

    Company B has a accounting currency CAD

    Company C has a accounting currency EUR

    When a person from company B creates a purchase requisition, the currency of the requisition will be USD.

    When the person from company B creates a customer, the currency will be defaulted with CAD.

    Does this makes sense to you?

    kind regards,

    André Arnaud de Calavon  |  Microsoft Dynamics AX Solution architect  |  My blog  |  My company

    This post is my own opinion and does not necessarily reflect the opinion or view of my company, Microsoft, both its employees, or other MVPs.

  • Hi Andre ,

    Thanks for the reply.

    you mean to say system currency is Parent company currency .

    Do you think is it correct When a person from company B creates a purchase requisition, the currency of the requisition will be USD. ?

    It should display  PR value in CAD currency  only as per legal entity currency not in USD currency ?

    Could you explain bit more the logic ?

  • The logic depends upon the shared table approach as Andre has pointed out - where tables are shared then they are global, and in the instances where these tables reference a currency they only reference one, the system currency.

    Steve Weaver | Dynamics AX Solution Architect - UK | My Blog

    This forum post is my own opinion and does not necessarily reflect the opinion or view of my employer, Microsoft, its employees, or other MVPs.

  • Hi Steven ,

    You mean to say that if Requistion tables are shared , then PR value  currency will show as system currency or it will show the value in legal entity currency.

    Am i right ?

    Do you think in real business scenarios, we will share the requisition tables  ?  , Because requisitions are site wise or legal entity wise ( it will not club the all legal entities )

  • The purchase requisition tables are shared as standard, it is the design inherent in the system. I have not tested this, but yes I believe the system currency would show and not the legal entity because they are shared. I did not design the system but I would not have shared the PR tables, but they are.

    Steve Weaver | Dynamics AX Solution Architect - UK | My Blog

    This forum post is my own opinion and does not necessarily reflect the opinion or view of my employer, Microsoft, its employees, or other MVPs.