What is parallel currency in SAP FI - Financial Accounting?

SAP Term: parallel currency

• Component: FI

• Component Name: Financial Accounting

• Description: A unit of exchange, whether official or unofficial, used alongside the local currency in accounting ledgers in order to compensate for inflation, exchange rates, or other fluctuations in the local currency.

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• Key Concepts: 
  Parallel currency is a feature of SAP Financial Accounting (FI) that allows users to maintain multiple currencies in the same company code. This feature is useful for companies that operate in multiple countries and need to track financial transactions in different currencies. It also allows users to compare financial data across different currencies. 
  
  How to use it: 
  To use the parallel currency feature, users must first set up a parallel currency in the company code. This can be done by going to the Financial Accounting (FI) module and selecting the “Parallel Currency” option. Once the parallel currency is set up, users can enter transactions in both currencies and view reports in both currencies. 
  
  Tips & Tricks: 
  When setting up a parallel currency, it is important to ensure that all exchange rates are up-to-date. This will ensure that financial data is accurate and that reports are accurate when viewed in different currencies. Additionally, it is important to ensure that all transactions are entered correctly in both currencies. 
  
  Related Information: 
  For more information on setting up and using the parallel currency feature, please refer to the SAP Help documentation or contact your local SAP support team. Additionally, there are many online resources available that provide detailed instructions on how to use this feature.