Sales are made to customers in a different currency than regular and this currency is accepted. Purchases are made from suppliers that bill in a different currency than your regular. Subsidiary companies that exist in areas that have different currency but are both under the same corporation requiring reporting in more than one currency type.
An overview of how Multi Currency can store daily rates, generate sales, purchase orders and bills in multiple currency types as set in the program. the currency specified against a customer or supplier dictates the currency used for transactions using these accounts (customer/supplier accounts).