What is global company currency in SAP FI - Financial Accounting?

SAP Term: global company currency

• Component: FI

• Component Name: Financial Accounting

• Description: A currency used for an internal trading partner.

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• Key Concepts: 
  Global company currency is a term used in SAP Financial Accounting (FI) to refer to the currency that is used for all financial transactions within a company. This currency is usually the same as the country's official currency, but it can be different if the company operates in multiple countries. The global company currency is used to record all financial transactions, and it is also used to calculate exchange rates when dealing with foreign currencies. 
  
  How to use it: 
  In SAP FI, the global company currency is set up in the system configuration. This setting can be changed at any time, but it should be done with caution as it can have an impact on all financial transactions. Once the global company currency is set up, all financial transactions must be recorded in this currency. If a transaction involves a foreign currency, then the exchange rate must be calculated and applied to the transaction. 
  
  Tips & Tricks: 
  When setting up the global company currency in SAP FI, it is important to ensure that it matches the country's official currency. This will help to ensure that all financial transactions are recorded accurately and that exchange rates are calculated correctly. It is also important to keep track of any changes made to the global company currency as this could have an impact on existing financial transactions. 
  
  Related Information: 
  The global company currency is closely related to other terms such as local currency and foreign currency. Local currency refers to the official currency of a country, while foreign currency refers to any other type of currency that is not the local or global company currency. Exchange rates are used to convert between different currencies when dealing with foreign currencies.