Core TSIs : Lease Accounting : Working with lease accounting : Using functional currencies
Using functional currencies
In large multinationals, lease contracts are often registered for different countries and with different contract currencies and functional currencies. See the following illustrations on how it works.
Diagram showing how to prepare working with currencies in PlanonDiagram showing how to prepare working with currencies in Planon
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Diagram showing how work with currencies in PlanonDiagram showing how work with currencies in Planon
Diagram showing how work with currencies in PlanonDiagram showing how work with currencies in Planon
Diagram showing how work with currencies in PlanonDiagram showing how work with currencies in Planon
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For more information on commitments, see Accounting commitments. For more information on performing an impairment or a remeasurement, see Performing an impairment or an impairment reversal and Performing a remeasurement.
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For more information on postings, see Generating postings.
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When working with functional currencies in Planon:
• The functional currency/contract currency feature cannot be used in combination with: Budgets, Rentable units, Orders and Invoices. These TSIs only work with the system currency functionality.
• Termination and renewal options can be linked to a single contract line, so that the execution amount / fine is applied to the linked contract line.
• You can use functional currencies for operating leases for both IFRS 16 and ASC 842 standards as well as for short-term/low value leases.
• Asset return postings using functional currencies is supported.