base currency

Definition

Currency key which should be used for all foreign currency translation for the exchange rate type in question.

Use

If foreign currency translation is necessary between many different currencies, you can simplify the maintenance of the exchange rates by specifying a base currency. You then only have to specify for this exchange rate type the rates of all currencies in relation to the base currency. All foreign currency translation is then carried out in two stages via the base currency.

Procedure

If you want to use this simplified form of exchange rate maintenance, simply enter the key here for the currency you want to use as a base currency.

Examples

Your base currency is USD. You want to translate 100.00 FRF into DEM. DEM is the local currency of the company code. The exchange rate table contains the following entries:

DEM USD 0.63000
FRF USD 0.22000

These values give the following (simulated) exchange rate:

FRF DEM 0.34921

The currency is then translated as if this were the exchange rate entered in the table.