In Financial Accounting, you have to specify at least one currency for the ledgers to be managed. As you need to cover local legal reporting requirements, this currency is the national currency of the company code, that is, the local currency (or company code currency). In addition, the system always records the value for the document currency, thus, no matter the currency you post with, the value posted for the currency is recorded exactly. In addition to the company code currency, you can assign many other currency types to a ledger for a company code since in SAP S/4HANA 1610, the Universal Journal supports the recording of many additional parallel currencies.
Standard Currency Types
The standard Currency Types offered by the system are the following:
| Currency Type | Description |
|---|---|
00 | Document currency |
10 | Company Code currency |
20 | Controlling Area currency |
30 | Group currency |
40 | Hard currency |
50 | Index-based currency |
60 | Global Company currency |
70 | CO Object currency |
You select which of any of these currency types are to be updated (in addition to 00 and 10, which are defaulted). If you need to record a currency type different to the ones offered in the standard system, you can configure your own currency types. The various additional reporting currencies are useful for internal reporting purposes, for example to give a truer view of the company performance restricting the largely uncontrollable fluctuation effects of currencies.