Here is the difference between document currency, local currency and global currencies:
1. Document Currency: is the currency in which actual transaction takes place. for e.g. if Apple buys hardware components from China the transaction will happen in Yuan Renminbi. so it becomes the document currency.
2. Local Currency: is the currency in which in a business unit closes its financial books. For e.g if Hyundai's manufacturing plant is in India and it orders parts from China, then the local currency of the transaction is INR while document currency is Yuan Renminbi.
Local currency is useful in cases where each business unit generates its own report in local currency.
3. Global Currency: is enterprise wide currency
Exchange Rate Types:
1. Document Currency: is the currency in which actual transaction takes place. for e.g. if Apple buys hardware components from China the transaction will happen in Yuan Renminbi. so it becomes the document currency.
2. Local Currency: is the currency in which in a business unit closes its financial books. For e.g if Hyundai's manufacturing plant is in India and it orders parts from China, then the local currency of the transaction is INR while document currency is Yuan Renminbi.
Local currency is useful in cases where each business unit generates its own report in local currency.
3. Global Currency: is enterprise wide currency
Exchange Rate Types:
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