Defining the Account Currency (SAP Library - General Ledger Accounting (FI-GL))

Defining the Account Currency

Use

When creating a G/L account, you must define the currency in which the account is to be kept.

This defines the following:

The currency used for postings made to this account
The currency in which transaction figures are updated and the account balance is displayed

You specify the account currency in the company code area of the G/L account master data. This allows you to keep the G/L account in the local currency of each company code. This is especially useful for international groups that have all subsidiaries use the same chart of accounts but with the accounts kept in the local currency.

Features

When setting the account currency, you have two options available:

Enter the local currency of your company code.

The system automatically uses the local currency that you defined when creating the company code as the default value.

This allows posting to the G/L account in any currency. When you make a posting in a foreign currency, the amount is translated into the local currency. For more information, see Posting a Document in a Foreign Currency.

The transaction figures are kept as follows:

In the local currency, that is, the total of all the amounts posted in the local currency
In the individual currencies, that is, the total of all the amounts posted in various currencies.

Enter a foreign currency. This is a foreign currency balance sheet account.

The G/L account can only be posted to in this currency.

The transaction figures and the account balance are kept in the foreign currency entered and in the local currency.