Differnce between accounting currency and parallel currency

Hi @Bathi1206 ,

Accounting Currency is simply the primary reporting currency of an entity. Known as Functional Currency or Base Currency.

Financial statements like income statement, balance sheet, and cash flow statement are all denominated in this currency.
For an example: A company based in Sweden with the majority of its business conducted in USD. USD would be be the accounting currency

Parallel Currency is an optional second currency of an entity which can be used for reporting purposes.

It is beneficial for companies operating in multiple currencies or having significant transactions in a currency other than their accounting currency. It allows analysis of sub-ledger transactions (E.g. Invoices, Payments, Fixed Assets, Tax etc) in a different currency. The application enables separate currency revaluation using this currency as well.
For an example: The Swedish company from the previous example might choose to set EUR (Euro) as a parallel currency.

Thanks and Best Regards

Madusha
 

Thank you for explaining @MadushaDissanayake