Currencies

Currencies: A company code can have 3 currencies in total. One which is called the local currency i.e. company code currency and 2 parallel currencies can be configured. When we do that the systems has the flexibility to report in the different currencies.

            In case of 2 currencies are configures. There is no need for an additional ledger. In case the third parallel currency is configured and is different than the second currency type, you need ot configure additional ledger.

Parallel Currencies:

1.      Group Currency: Group Currency is the currency which is specified in the client table or which is to be entered there. It is used when the company spread in different countries, in order to take the statements in one currency finally.

2.       Hard Currency: Hard currency is a country-specific second currency which is used in countries with high inflation. When their currency has the high inflation effect in their country, then they use some other currency to overcome from this problem. That currency is called hard currency.

3.      Index-Based Currency: Index based currency is a country specific fictitious currency, which is required in some countries with high inflation for external reporting e.g. Tax returns.

4.      Global Currency: Global company currency is the currency, which is used for an internal trading partner.