What is 'source currency' in SAP FS-AM-IM - Item Management?

source currency - Overview

• Component: FS-AM-IM

• Component Name: Item Management

• Description: The currency that the system uses in a currency exchange to convert the amount of a payment item to the target currency, using the exchange rate.

source currency - Details

• 
  Key Concepts: 
  Source currency is a term used in the FS-AM-IM Item Management component of SAP. It is the currency in which the item is purchased or sold. This currency is used to determine the exchange rate for the item and to calculate the cost of the item. 
  
  How to use it: 
  The source currency is set when an item is created in SAP. This currency can be changed at any time, but it must be done manually. The source currency can be used to determine the exchange rate for the item and to calculate the cost of the item. 
  
  Tips & Tricks: 
  When setting the source currency, it is important to make sure that it is set correctly. If it is not set correctly, then the exchange rate and cost calculations may be incorrect. 
  
  Related Information: 
  The source currency can be used in conjunction with other SAP components such as Financial Accounting (FI) and Controlling (CO). It can also be used to determine pricing for items in different currencies.