Parallel Accounting and Currencies 

Use

If you use parallel accounting, you can portray your valuations and closing operations in two parallel currencies. This means that you can perform parallel accounting according to two different accounting principles and in two different currencies.

You can perform your valuations and closing operations for a German subsidiary of an American group as follows:

Accounting Principle	Currency
HGB (local accounting principle)	EUR
US GAAP (group accounting principle)	USD

The currency of the company code (local currency) must be the national currency. This setting is necessary for various functions, such as reporting.

Features

If you want to perform your valuations and closing operations according to parallel accounting principles and in parallel currencies, you can define - in addition to the local currency - a parallel currency (group currency) in the parallel ledgers.

This means that you run the parallel currency in all processes and functions in Financial Accounting.

For more information, see Managing Parallel Currencies in Parallel Ledgers.