What is 'local currency amount' in SAP FI - Financial Accounting?

local currency amount - Overview

• Component: FI

• Component Name: Financial Accounting

• Description: The amount entered in the currency defined for the company code. If an amount is created in foreign currency, the system translates it into local currency.

local currency amount - Details

• 
  Key Concepts: 
  Local currency amount is a term used in SAP Financial Accounting (FI) to refer to the amount of a transaction that is recorded in the local currency of the company. This amount is used to calculate the exchange rate for the transaction and is also used to record the transaction in the company's books. 
  
  How to use it: 
  In SAP FI, local currency amounts are used to record transactions in the company's books. When a transaction is entered into SAP FI, the local currency amount is entered first, followed by the exchange rate for the transaction. The exchange rate is then used to calculate the foreign currency amount of the transaction. 
  
  Tips & Tricks: 
  When entering a transaction into SAP FI, it is important to ensure that the local currency amount and exchange rate are entered correctly. This will ensure that the foreign currency amount of the transaction is calculated accurately. 
  
  Related Information: 
  The local currency amount of a transaction can be found on the company's financial statements. It can also be found on reports generated from SAP FI, such as balance sheets and income statements.