Parallel Currencies in Financial Accounting

Use

In Financial Accounting, in addition to the local currency, you can define a maximum of two parallel currencies for your company code. This means your ledgers are managed in these parallel currencies in addition to the local currency.

You can use various different currency types as parallel currencies. You define the currency for 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.

Caution Caution

You can use a maximum of two parallel currencies (second local currency and third local currency).

Only if you define the group currency as the second local currency are there no further effects. In all other cases, you need to define an additional ledger, in which the transaction figures are managed, in the application component Special Purpose Ledger.

End of the caution.

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

Activities

To define parallel currencies, in Customizing, choose:

For classic General Ledger Accounting: Financial Accounting Financial Accounting Global Settings Company Code Parallel Currencies .
For new General Ledger Accounting: Financial Accounting (New) Financial Accounting Global Settings (New) Ledgers Ledger :
- Define Currencies of Leading Ledger
- Define and Activate Non-Leading Ledgers
  For more information, see Parallel Currencies in Parallel Ledgers.