With Parallel Currencies Disabled

When the financial schedules are generated, the application converts the liability and asset values from contract currency to the local (company) currency using the configuration defined in the Exchange Rate Type configuration table and the Depreciation Area Determination table in the Financial Organization Structure:

The application verifies the Exchange Rate Type table to get the exchange rate type (M) definition.
The application looks up the conversion from contract to company currency in the Exchange Rate configuration table, based on the ROU Start Date.
The application calculates the initial liability and asset capitalization amounts in the company code currency for the inception journals. Note that if carry-over balances have been entered, the application uses a weighted average exchange rate to calculate the asset capitalization amounts.

When you post payments, accruals, and charges, they are posted in contract currency, unless the contract uses an indexed currency.When a posting is triggered:

The application looks up the Exchange Rate Type configuration table to retrieve Currency type 10 (Exchange Rate Type M) for the parameters to calculate the amounts in local (company) currency.
The application retrieves the currency conversion rates from the Exchange Rate table, and calculates the amounts in company currency.
The application uses the amounts in contract and company currencies for all the journal postings.

The application posts depreciation in both contract and company currency. The application converts the contract currency amounts to the company currency using a weighted average exchange rate (and does not look up the daily spot rate in the Exchange Rate table).

When there is a negative ROU delta amount (e.g., following a lease modification for Decrease Asset Value or Decrease Lease Term, or a reassessment to add a Reduction term), the application also uses a weighted average exchange rate. If the amount is positive, the application uses the spot rate to convert the amount to company and group currencies. See Weighted Average Exchange Rate for more information.