Parallel Accounting and Currencies

Use

You can depict your parallel accounting in two parallel currencies. This means that you can carry out your valuations and closing operations according to two different accounting principles and in two different currencies.

Example of a parallel accounting for a German subsidiary of an American group in two parallel currencies

Accounting principle	Currency
HGB or German commercial code (Accounting principle for German subsidiary)	EUR
US-GAAP (Group accounting principle)	USD

Caution Caution

The company code currency (local currency) must correspond to the national currency (local currency). This setting has to be made for various functions, such as for Reporting.

End of the caution.

Features

If you want to carry out your valuations and closing operations according to parallel accounting principles and in parallel currencies, you can choose between two different procedures:

Definition of a parallel currency (group currency)

In addition to the local currency, you can also define a parallel currency (group currency). To do so, call up Financial Accounting Customizing and choose Financial Accounting Global Settings Parallel Currencies Define Additional Local Currencies .

By doing so, you store the parallel currency for all processes and functions in Financial Accounting.
Currency translation to the group currency for closing operations

All functions and processes in Financial Accounting can be carried out in local currency only . You can then translate your closing entry into the group currency. You can carry out the currency translation either in Financial Accounting or in Consolidation.
- Financial Accounting
  
  Choose Accounting Financial Accounting General Ledger Periodic Processing Closing Valuate Foreign Currency Valuation from the SAP Easy Access menu.
- Consolidation