What is foreign currency balance sheet account in SAP FI - Financial Accounting?

SAP Term: foreign currency balance sheet account

• Component: FI

• Component Name: Financial Accounting

• Description: An account managed in a foreign currency. Foreign currency balance sheet accounts can be used in accounting to represent foreign currency accounts held at banks.

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• Key Concepts: 
  A foreign currency balance sheet account is an account in the SAP Financial Accounting (FI) component that is used to record the balance of a company’s assets and liabilities in a foreign currency. This account is used to track the company’s financial position in a foreign currency, and can be used to compare the company’s financial position in different currencies. 
  
  How to use it: 
  To create a foreign currency balance sheet account, go to the SAP FI module and select “Create Balance Sheet Account”. Enter the account number, name, and currency of the account. Select “Foreign Currency” as the type of account. Once the account is created, you can enter transactions into it in the foreign currency. 
  
  Tips & Tricks: 
  When entering transactions into a foreign currency balance sheet account, make sure to enter the exchange rate for that transaction. This will ensure that the balance of the account is accurate and up-to-date. 
  
  Related Information: 
  For more information on foreign currency balance sheet accounts, see SAP Help documentation on “Creating Balance Sheet Accounts”.