What is principal currency in SAP CO-PC - Product Cost Controlling?

SAP Term: principal currency

• Component: CO-PC

• Component Name: Product Cost Controlling

• Description: The main currency in revenue recognition, used for all functions such as revaluation or balance sheet contraction reduction in total assets.

Smart SAP Assistant

• Key Concepts: 
  Principal currency is a term used in SAP's Product Cost Controlling (CO-PC) component. It is the currency in which the costs of a product are calculated and stored. This currency is usually the same as the company's local currency, but it can be different if the company operates in multiple countries with different currencies. 
  
  How to use it: 
  In order to set up a principal currency, you must first create a controlling area in SAP. Once this is done, you can assign a principal currency to the controlling area. This will be the currency used for all cost calculations and postings within that controlling area. 
  
  Tips & Tricks: 
  When setting up a principal currency, it is important to make sure that all of the currencies used in the controlling area are compatible with each other. This will ensure that all of the cost calculations and postings are accurate and consistent. 
  
  Related Information: 
  For more information on setting up a principal currency in SAP's Product Cost Controlling component, please refer to SAP's official documentation.