Consolidation can be performed between entities using the same or different base currencies. When the entities are in domains with different base currencies, the system converts transactions in the base currency of the source entity into the base currency of the consolidation entity using rates in the exchange rate shared set of the consolidation entity. The exact rate used is determined for each account based on the setting of the Consolidation Method field in the Currency tab of GL Account Create. This can have one of the following values:

These methods are described in Consolidation Method.

When different methods are used, exchange rate differences may result. These are posted to the Rounding Differences account specified in Consolidation Cycle Create.