Currencies 

Definition

Legal means of payment in a country.

Use

For each monetary amount that you enter in the SAP System, you must specify a currency. You enter currencies as the ISO standards, for example, USD for US dollar.

You define currencies in Customizing. To do this, choose General Settings ® Currencies ® Check Currency Codes.

In Financial Accounting, you have to specify for each of your company codes, in which currency ledgers should be managed. This currency is the national currency of the company code, that is, the local currency (or company code currency). From a company code view, all other currencies are then foreign currencies.

You can manage ledgers in two parallel currencies in addition to the local currency, for example, group currency or hard currency. For more information, see Parallel Currencies.

In order for the system to translate amounts into various currencies, you must define exchange rates. For each currency pair, you can define different exchange rates and then differentiate between them by using exchange rate types.

Integration

In Financial Accounting, currencies and currency translation are relevant in the following circumstances:

 

General Ledger

Accounts Receivable and Accounts Payable

Account master data

Defining account currencies

Defining reconciliation accounts

Posting

Posting documents in foreign currency

Clearing

Clearing open items in foreign currency

Foreign currency valuation

Foreign currency valuation