Currencies in the Reconciliation Ledger 

Use

In the reconciliation ledger you can record currencies in controlling area currency, group currency, and company code currency. The GLT0 ledger containing the FI data is recorded in company code currency because the company code is the organizational unit in the FI component. To compare postings in FI and CO in the same currency, you must record the group currency in the GLT0 ledger. This is particularly necessary if you make postings in CO across company codes and the company codes are managed in different currencies.

To activate the group currency in the GLTO ledger, go to Customizing for Financial Accounting, and choose:

Financial Accounting Global Settings ® Company Code ® Additional Local Currencies ® Define additional local currencies (see: Define Additional Local Currencies)

The group currency is not relevant for comparisons at company code level.

For CO documents, the translation to group currency is always made using the exchange rate type M (standard translation at the average rate). In Financial Accounting, however, you can specify a different exchange rate type for the company code.

If you want to use group currency for cross-company-code comparisons, always specify currency type 30 (group currency) with exchange rate type M (standard translation at the average rate) when you maintain additional company code currencies in FI.

To do so, go to Customizing for Financial Accounting and choose Financial Accounting Global Settings ® Company Code ® Additional Local Currencies ® Define Additional Local Currencies (see: Define Additional Local Currencies ).

When you make a reconciliation posting for CO-FI, the system transfers the amounts (to be reconciled) in all three currencies to FI. The system does not update the transaction currency in the reconciliation ledger .This is because you can make CO postings in different transaction currencies, which are not used in FI.