Skip to main content

Handling Multiple Currencies in SAP

SAP allows you to define 3 parallel currencies in addition to document currency. These currencies can be used for reporting valuation in different currencies.

Currency Types

Parallel currencies can be defined in OB22. You can choose the currencies from 5 available currencies as below.

  • 10 (Company Code Currency) - This is available as first currency by default. The value comes from the company code configuration (Check tcode OBY6).

  • 30 (Group Currency) – Group currency is same for the system. It is defined at the client level (Check tcode SCC4).

  • 40 (Hard Currency) – Hard currency is used for the countries with high inflation. This is defined at country level (check tcode OY01).

  • 50 (Index-based Currency) – Index-based currency is defined for external statutory reporting (such as tax reporting) in some countries with high inflation. This is also defined at country level (check tcode OY01 ).

  • 60 (Global Company Currency) – Global company currency is defined at company level (check tcode OX15).

First currency is always company code currency. You can define additional 2 parallel currencies from the remaining 4 currency types above.

Foreign Currency Valuation Configuration

Foreign currency valuation is done to prepare financial statements at a key date. All the foreign currency transactions are converted to desired currency at the key date. Here are the key pieces of config you need to maintain for valuation.

  • Valuation Method –Valuation method determines the method that will be used for valuation such as Moderate or Strict Lowest Value Principle. You also store Document type for posting and Exchange rate to be used for valuation.

  • Valuation Area –Valuation area is used to define which currency should be revaluated (Company code currency, Group currency etc). Valuation method is assigned to Valuation Area.

  • Accounting Principle –You define the accounting principle to apply certain accounting rules such as US GAAP or IFRS. Valuation area is assigned to Accounting principle. Accounting principle is then assigned to Ledger group.


Popular posts from this blog

26 Proven Work at Home Business Ideas You Can Run Part Time

If you are looking for work at home business ideas, then this list can help you. All of these can be done as part-time business, so you don’t have to leave your job until you are confident of making full time income from your Work at home business.

Enterprise Digital Transformation: Top 10 Posts from Week of 06-Aug-2017

How can you measure your organization’s digital maturity? How can CIO deliver on the digital transformation promises? How is SEO changing with the use of machine learning? How can you manage data to build a strong core for your digital business? – Our weekly coverage of enterprise digital transformation posts cover answer to all these questions and much more.

Encyclopaedia Britannica – Webshare and Widget Program

Britannica opened up online Encyclopedia for Web Publishers for free access and article sharing.
Founded in 1768, Britannica is a reputed and trustworthy General Encyclopaedia, edited with the help of few editors and many Expert Contributors. Few of the Contributors are Noble Prize Winners. Britannica’s model has been challenged by Wikipedia, which can be edited and read by anybody. Britannica can be edited by only a closed group of editors and contributors and follows a subscription based business model.