What is local currency in SAP FI - Financial Accounting?

SAP Term: local currency

• Component: FI

• Component Name: Financial Accounting

• Description: The currency of a company code country currency in which the local ledgers are managed.

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• Key Concepts: 
  Local currency is a term used in SAP Financial Accounting (FI) to refer to the currency of the country in which a company operates. This currency is used to record all financial transactions and is the basis for all financial reporting. It is also used to calculate exchange rates when dealing with foreign currencies. 
  
  How to use it: 
  In SAP FI, local currency is set up in the company code configuration. This setting determines which currency will be used for all financial transactions and reporting. Exchange rates can be set up to convert foreign currencies into the local currency. 
  
  Tips & Tricks: 
  When setting up exchange rates, it is important to ensure that they are updated regularly to reflect current market conditions. This will ensure that all financial transactions and reports are accurate and up-to-date. 
  
  Related Information: 
  For more information on local currency and exchange rates in SAP FI, please refer to the SAP Help Portal or contact your SAP consultant.