Currencies - SAP Documentation

Definition

Legal means of payment in a country.

Use

For each monetary amount that you enter in the SAP System, you must specify a currency. You enter currencies as the ISO standards, for example, USD for US dollar.

You define currencies in Customizing.To do this, in Customizing choose SAP NetWeaver General Settings Currencies Check Currency Codes .

In Financial Accounting, you have to specify for each of your company codes, in which currency ledgers should be managed. This currency is the national currency of the company code, that is, the local currency (or company code currency). From a company code view, all other currencies are then foreign currencies .

You can manage ledgers in two parallel currencies in addition to the local currency, for example, group currency or hard currency. For more information, see

General Ledger Accounting (new) under Parallel Currencies in Parallel Ledgers and
classic General Ledger Accounting under Parallel Currencies in Financial Accounting .

In order for the system to translate amounts into various currencies, you must define exchange rates . For each currency pair, you can define different exchange rates and then differentiate between them by using exchange rate types .

Integration

In Financial Accounting , currencies and currency translation are relevant in the following circumstances:

	General Ledger Accounting	Accounts Receivable and Accounts Payable
Account master data	Defining the Account Currency	Defining the Reconciliation Account
Post	Posting Documents in a Foreign Currency
Clearing	Clearing Open Items in Foreign Currencies
Foreign Currency Valuation	Foreign Currency Valuation