Overview on Currencies in SAP

SAP manages all transactions in worldwide using currency codes

eg: USD, INR, YEN,EUR

Currencies in SAP:

1. Group Currency (SAP Client level)
2. Local Currency (Company Code level) ( The currency in which the legal entities carries out its normal business )
3. Global Currency (Consolidations and trading partners level currency)
4. Transaction Currency (Document Currency)
5. Second Local Currency
6. Third Local Currency
7. Index-Based Currency (Country-specific)
8. Hard Currency(Country-specific Second currency)
9. Material Ledger Currencies
10. Controlling Area Currency
11. CO Object Currency
12. Operating Concern Currency
13. Depreciation Area Currency
14. G/L Account Currency

Currency Type

• Currency Types controls which currency codes are used for recording financial transactions
• Currency type is the main key that describes a currency’s role.
• Currency Type (CT) is different than Currency Code (such as USD, GBP, EUR, etc.)
• Each ledger/module of SAP can store a different combination of currency types depending on how they are configured.
• In SAP, a single financial transaction is recorded using multiple currency types

Common Currency Types:

1. Transaction Currency (TC)/ Document Currency (DC): Currency Type - 00  The currency of the accounting transaction.                                       Entered at Document Header level Screen (e.g. FB01, GB01).
2. Local Currency(company code level) (LC): Currency Type - 10   All transactions are automatically recorded in local currency.                                      Configured using Tcode OBY6.
3. Group currency (specified at Client level): Currency Type - 30
4. Hard currency (country-specific Second currency): CurrencyType -  40 Country-specific currency is usually used in high-inflation countries
5. Index-based currency (country-specific): Currency Type - 50 Country-specific theoretical currency used in high-inflation countries as a comparison currency for statutory reporting. Similar to hard currency, but used less frequently.
6. Global currency (consolidations and trading partners): Currency Type - 60 Currency of FI-SL global company code
7. Controlling area currency: Currency Type - 20
8. Controlling object currency: Currency Type - 70
9. Ledger currency: Currency Type - 80
10. Profit center currency: Currency Type - 90
11. Financial management area currency : Currency Type - A0
12. Operating concern currency : Currency Type - B0
13. Consolidation unit currency : Currency Type - C0

Other Facts:

• Document Currency (Transaction Currency) is Mandatory
• Company Code (Local Currency) is Mandatory
• In addition we could have up to two parallel currencies ( optional )
• Once the SAP system is live, you CANNOT change the currency setup