At ABC Corporation, you need to restate prior-year data because of accounting changes. You also need to record multiple group currencies for reporting purposes. To meet these requirements, you can use a version stack made up of the following:
- Standard: This is the main (default) version. A standard version has no reference version. A default version can store data in the local currency, group currency, transaction currency, and quantity.
- Extension: An extension version has a reference version and has the same group currency as its reference version. From a technical perspective, it only records the delta amount as compared to the reference version.
- Group currency extension: A group currency extension version has a reference version. It has a different group currency than the reference version. Its reference version must be a standard version.
In our business scenario, the extension version is needed to restate historical data due to an accounting change. The group currency extension is needed to provide an additional group currency in USD.
In the following video, you can learn about the course scenario for version stacks.