What is transaction currency in SAP FI-LC - Consolidation?

SAP Term: transaction currency

• Component: FI-LC

• Component Name: Consolidation

• Description: The currency in which a business transaction is processed and booked. The business transaction can be posted in the transaction currency as well as in the local currency. This can occur when the trading partners use different local currencies.

Smart SAP Assistant

• Key Concepts: 
  Transaction currency is a term used in the FI-LC Consolidation component of SAP. It is the currency in which all transactions are recorded and reported. This currency is usually the same as the company's functional currency, but it can be different if the company has operations in multiple countries. 
  
  How to use it: 
  In order to use transaction currency, it must first be set up in the system. This can be done by going to the Financial Accounting (FI) module and selecting the “Currency” tab. From there, you can select the “Transaction Currency” option and enter the desired currency. Once this is done, all transactions will be recorded and reported in this currency. 
  
  Tips & Tricks: 
  It is important to remember that transaction currency should always be set up before any transactions are entered into the system. This will ensure that all transactions are recorded and reported accurately. Additionally, it is important to keep track of any changes to the transaction currency as this could affect how transactions are reported. 
  
  Related Information: 
  For more information on setting up transaction currency in SAP, please refer to the SAP Help documentation or contact your local SAP support team. Additionally, there are many online resources available that provide detailed instructions on how to set up transaction currency in SAP.