Parallel Currencies (SAP Library - Financial Accounting

Parallel Currencies

Use

In Financial Accounting, you can define up to two parallel currencies in addition to the local currency. Your ledgers are thereby managed in these parallel currencies in addition to the local currency.

You can use various different currency types as parallel currencies. You define the currency for a currency type when you define the organizational units.

Group Currency

You define the group currency when you define your client.

Global company Currency

You define the global company currency when you define the company that is assigned to your company code.

Hard Currency

You define the hard currency when you define the country that your company code is assigned to.

Index-Based Currency

You define the index-based currency when you define the country that your company code is assigned to.

You can use a maximum of two parallel currencies (second and third local currencies).

If you have defined the group currency as the second local currency, this has no additional effects. In all other cases, you define an additional ledger in which transaction figures are managed.

Features

If you manage your ledgers in parallel currencies, this has the following effects:

During posting, the amounts are also saved in the parallel currencies. The amounts are translated automatically, but you can also enter them manually.
G/L account transaction figures are also updated in the parallel currencies.
Exchange rate differences also arise in the parallel currencies.
You can also carry out a foreign currency valuation in the parallel currencies.

Activities

To define parallel currencies, proceed as follows in Customizing for Financial Accounting: Financial Accounting Global Settings ® Company Code ® Parallel Currencies.