What is a local currency and parallel currency in SAP?
Each company code can have two additional currency is addition to the company code currency entered to the company code data. The currency entered in company code creation will be called local and the other two additional currencies are called parallel currencies.
What is local currency with example?
A local currency is the currency most commonly used within a country. This is usually the national currency. Thus, the U.S. dollar might be accepted in the United Kingdom, but the local currency there is the pound, since that is the national currency and the currency in which most transactions are settled.
What are some examples of local currency?
Local Currency Models
- Historic Local Bank Notes.
- Convertible Paper Currencies.
- WIR.
- HOURS.
- Time Dollars, Time Banks.
- LETS and Mutual Credit Systems.
- Self-financing Scrip.
- Multiple-store Notes/Customer Loyalty Scrip.
What is parallel currency in SAP?
Parallel currencies are the custom currencies as per the requirement of the company. Parallel currencies can work in foreign business transactions. If we want to do international payments or receivables transactions, we must configure parallel currency.
What are currency types in SAP?
Types of Currencies in SAP Group currency: The currency is assigned at the client level. Hard currency: The currency which is assigned at the country level. Index based currency: This currency is assigned to countries in case of high inflation in these countries.
What is only balance in local currency in SAP?
SAP Manages the balance of a G/L Account in Transaction as well as Local Currency. If the Balance in Local currency (BILCO) Flag is set in the G/L Account master data then SAP maintains the balance of the G/L Account in Local currency only.
Where is global currency defined in SAP?
In this SAP FICO tutorials, you will learn how to define currencies of leading ledger in SAP step by step.
- Path: SPRO > IMG > Financial Accounting (New) > Financial Accounting Global Settings (New) > Ledgers > Ledger > Define Currencies of Leading Ledger.
- Configuration steps.
How to check currency exchange rate in SAP?
Create and delete exchange rates
How to configure currency type in SAP?
– Currency Type: Enter 2 digits key that defines the currency type in SAP Hana – Description: Enter the description of currency type – Short Description: Enter the short description of currency type – Definition Level Settings: Choose the definition level for currency type settings as Global or company code specific.
How to check currency codes in SAP?
– SAP Currency Tables – SAP Currency Tcodes – Check Currency in SAP. Function?module?about?PO?currency?determination, and currency check program. – Convert Amount into Foreign Currency – Go further on SAP Currency
How to create local currency?
Base_Year
https://www.youtube.com/watch?v=c0gcdHQLHrU