What is hard currency in SAP FI - Financial Accounting?

SAP Term: hard currency

• Component: FI

• Component Name: Financial Accounting

• Description: A country-specific second currency used in countries with high rates of inflation.

Smart SAP Assistant

• Key Concepts: 
  Hard currency is a term used in SAP Financial Accounting (FI) to refer to a currency that is not subject to exchange rate fluctuations. This means that the value of the currency remains stable and does not fluctuate with the market. Hard currencies are typically used for international transactions and are usually the currencies of major economies, such as the US dollar, Euro, and British pound.
  
  How to Use It: 
  In SAP FI, hard currencies are used to ensure that international transactions are accurately recorded and reported. When entering a transaction in SAP FI, you will need to specify the currency type (hard or soft) for each transaction. This will ensure that the correct exchange rate is applied when calculating the value of the transaction.
  
  Tips & Tricks: 
  When entering a transaction in SAP FI, it is important to select the correct currency type (hard or soft). This will ensure that the correct exchange rate is applied when calculating the value of the transaction. Additionally, it is important to keep track of any changes in exchange rates as this can affect the value of your transactions.
  
  Related Information: 
  For more information on hard currencies and how they are used in SAP FI, please refer to SAP's official documentation on Financial Accounting (FI). Additionally, you can find more information on exchange rates and how they affect international transactions on websites such as Investopedia.