Managing Parallel Currencies in Parallel Ledgers 

Use

In Financial Accounting, in addition to the local currency, you can define a maximum of two parallel currencies for your company code. Since the settings of the company code are transferred for the leading ledger, your leading ledger is also managed in these parallel currencies as well as the local currency in this case. You can only specify the parallel local currencies specified in the leading ledger as parallel currencies in the non-leading ledgers. Alternative currencies are not possible.

If you require more than three currencies, you can portray these currencies in the component Special Purpose Ledger (FI-SL).

You can use various currency types for the parallel currencies. You define the currency of 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 assigned to your company code.

·        Hard Currency

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

·        Index-Based Currency

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

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.

·        Transaction figures for the G/L accounts are also updated in the parallel currencies.

·        Exchange rate differences during clearing also appear in the parallel currencies.

·        You can also perform a foreign currency valuation in the parallel currencies.

Activities

To run the parallel currencies for all processes and functions in Financial Accounting, in Customizing for Financial Accounting (New), choose Financial Accounting Global Settings (New) ® Ledgers ® Ledgers:

·        Define Currencies of Leading Ledger

·        Define and Activate Non-Leading Ledgers

Here you can specify the second and third local currency for your non-leading ledgers.

The following restrictions apply to the parallel currencies:

·        You can use a maximum of three parallel currencies (also the second local currency and third local currency).

·        The second and third currency of the parallel ledgers must be a currency that is managed as second or third currency in the respective company code. These currencies are transferred to the leading ledger. You can only specify the parallel local currencies specified in the leading ledger as parallel currencies in the non-leading ledgers. Alternative currencies are not possible.