How the threshold currency works?

Summary:

Hi,

This might be a fundamental question but I still want to get it clarified.

We have setup below for all books at book level.

Type - Cost

Threshold currency - USD

Conversion type - Custom rate type

Capitalisation threshold - 250

Low value threshold - 250

Testing for Lithuanian book which is assigned to Lithuanian ledger which has a functional currency in EUR.

Case1 (Expensed below 250 euros)

Created an invoice in euros with all other conditions met like clearing account and track as asset. 

When line is interfaced to FA module, asset will be created with same amount as on invoice line in euros, right? This is what happened.