Financial data reported by consolidation units is usually translated from local currency into group currency. If any financial statement item values are reported in both local and transaction currency, you may want to translate from transaction currency into group currency.

For example, you can translate values from goods and service transactions from transaction currency into group currency. This is typically the case for payables and receivables, and revenue and expense.

Local currency or transaction currency can be the base currency for translation. You use a currency translation key in Customizing to determine the base currency as follows:

• With translation keys '9' and 'A', the transaction currency is the base currency.
• With all other translation keys, the local currency is the base currency.