Currencies in Controlling
You can use different currencies in the Controlling component (CO).
Features
The following currencies are valid in Controlling:
controlling area currency (CO)
The system uses this currency for cost accounting. This currency is set up when you create the controlling area. It is based on the assignment control indicator and the currency type.
object currency (CO)
Each object in Controlling, such as cost center or internal order, may use a separate currency specified in its master data. When you create an object in CO, the SAP system defaults the currency of the company code to which the object is assigned as the object currency. You can specify a different object currency only if the controlling area currency is the same as the company code currency. There is an object currency for the sender as well as one for the receiver.
transaction currency (CO)
Documents in Controlling are posted in the transaction currency. The transaction currency can differ from the controlling area currency and the object currency. The system automatically converts the values to the controlling area currency at the exchange rate specified.
Note
The system always translates actual data with the average rate (exchange rate type M
).
You store the exchange rate type for each currency. You can specify a different exchange rate type for planning data in the version.
All three currencies are saved in the totals records and the line items. This enables you to use the different currencies for evaluations in the information system. This is only possible if you specified that all currencies should be updated for the given controlling area. For more information, see the Customizing activity Maintain Controlling Area
.
Example
The transaction currency is USD, the controlling area currency is EUR, and the object currency is SFR (Swiss francs). The system converts the amounts as follows:
From transaction currency to controlling area currency (
USD
toEUR
)From controlling area currency to object currency (
EUR
toSFR
)
The following additional currencies may also appear as controlling area currencies in Controlling if you use cross-company code cost controlling:
Local Currency
Company code currency (country currency) used for local ledgers in external accounting.
For each company code you can specify one or two parallel currencies (= second and third local currencies) which are stored in the documents and updated parallel to the local currency in the general ledger.
Group Currency
Currency in which the group balance sheet is displayed.
You can specify it as a parallel currency (additional local currency) for a company code.
Hard Currency
Secondary currency for countries with high inflation. You can specify it as a parallel currency (additional local currency) for a company code. You need to specify the hard currency in the detail screen for the corresponding country.
Index-Based Currency
Country-specific, fictitious currency stipulated in certain countries with high inflation for tax returns. You can specify it as a parallel currency (additional local currency) for a company code. You need to specify the index-based currency in the detail screen for the corresponding country.
Global Company Currency
Currency used in a corporate group. In the CO application component you can create companies to represent divisions, regions, or product groups.
You can specify it as a parallel currency (additional local currency) for a company code. You need to store the global company currency in the detail screen for the corresponding company.
For more information on defining parallel currencies, see Customizing under 
Financial Accounting
FI Global Settings
Company Code
Parallel Currencies
Defining additional local currencies
.