Explain The Difference In Currency
Explain the difference between group currency, parellel currency, hard currency and index based currency. Explain the context in which we use these. Definition for different currencies: Object currency - CO - A currency defined in the master
record of a Controlling object (cost center, internal order, and
Transaction Currency - the currency in which a business transaction is processed and booked. The business transaction can be posted in the transaction currency as well as in the local currency. This can occur when the trading partners use different local currencies. The transaction currency can differ from the controlling area currency and the object currency. The SAP system can perform currency translations using a predefined average exchange rate. Hard currency - Hard Currencies are used in countries
with high inflation to improve the value of transaction. When a
Group Currency - Group currencies are defined at the client
level in table T000. Group currencies are used to enable
Index –Based Currency - Index based currencies are used
for statutory reporting purposes for subsidiaries in some countries
Parallel currency - For company code, we may have one
local currency and up to two parallel currencies in the system. All
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