What is 'equivalent value account' in SAP FI-GL-CU-MCA - Multi Currency Accounting?

equivalent value account - Overview

• Component: FI-GL-CU-MCA

• Component Name: Multi Currency Accounting

• Description: Account to which you post equivalent values in the functional currency for foreign currency postings. You use equivalent value accounts in the MCA posting schema "4-Pack".

equivalent value account - Details

• 
  Key Concepts: 
  An equivalent value account is a type of account used in SAP's Multi Currency Accounting (MCA) component of the Financial Accounting (FI-GL) module. It is used to record the exchange rate differences between two currencies when a transaction is posted. The equivalent value account is used to store the difference between the original transaction amount and the converted amount. 
  
  How to use it: 
  When a transaction is posted in a foreign currency, the system will automatically calculate the exchange rate difference between the original currency and the converted currency. This difference will be stored in an equivalent value account. The equivalent value account can then be used to track any changes in exchange rates over time. 
  
  Tips & Tricks: 
  It is important to note that the equivalent value account should not be used as a general ledger account. Instead, it should only be used to track exchange rate differences between two currencies. 
  
  Related Information: 
  For more information on SAP's Multi Currency Accounting component, please refer to SAP's official documentation here: https://help.sap.com/viewer/product/SAP_FI_GL_MCA/731/en-US