What is 'exchange rate indicator' in SAP FI-LC - Consolidation?

exchange rate indicator - Overview

• Component: FI-LC

• Component Name: Consolidation

• Description: A classification of exchange rates for foreign currencies. &EXAMPLE& Current rate spot rate, average rate, or historical rate.

exchange rate indicator - Details

• 
  Key Concepts: 
  Exchange rate indicator is a feature of the FI-LC Consolidation component of SAP. It is used to define the exchange rate that will be used when converting foreign currency amounts into the local currency. The exchange rate indicator can be set up to use either a fixed or a variable exchange rate. 
  
  How to use it: 
  The exchange rate indicator can be set up in the SAP system by going to the Financial Accounting (FI) module and selecting the Exchange Rate Indicator option. This will open a window where you can enter the details of the exchange rate indicator, such as the currency, exchange rate type, and exchange rate value. Once these details have been entered, the exchange rate indicator can be saved and used in transactions involving foreign currency amounts. 
  
  Tips & Tricks: 
  When setting up an exchange rate indicator, it is important to ensure that the correct currency is selected and that the exchange rate type and value are correct. This will ensure that transactions involving foreign currency amounts are converted correctly into the local currency. 
  
  Related Information: 
  For more information on setting up an exchange rate indicator in SAP, please refer to the SAP Help documentation or contact your local SAP support team.