What is currency type in SAP FI - Financial Accounting?

SAP Term: currency type

• Component: FI

• Component Name: Financial Accounting

• Description: A key identifying the role of a currency in the SAP system. In addition to the local currency as house currency, you can manage parallel currencies with the following currency types: Group currency Hard currency Index currency Global company currency

Smart SAP Assistant

• Key Concepts: 
  Currency type is a feature of SAP Financial Accounting (FI) that allows users to define different currencies and assign them to company codes. This enables users to manage multiple currencies in the same system. Currency types are used to define the exchange rate between two currencies, and can be used for both internal and external transactions. 
  
  How to use it: 
  In order to use currency type, users must first define the currency in the system. This can be done by entering the currency code, exchange rate, and other relevant information in the system. Once the currency is defined, it can be assigned to a company code. This will enable users to manage multiple currencies in the same system. 
  
  Tips & Tricks: 
  When defining a currency type, it is important to ensure that the exchange rate is accurate. This will ensure that all transactions are properly recorded and reported. Additionally, it is important to keep track of any changes in exchange rates, as this may affect the accuracy of financial reports. 
  
  Related Information: 
  For more information on currency type, please refer to SAP Help documentation or contact your local SAP support team. Additionally, there are many online resources available that provide detailed information on how to use currency type in SAP FI.