What is transaction currency in SAP FS-AM - Account Management?

SAP Term: transaction currency

• Component: FS-AM

• Component Name: Account Management

• Description: The currency of a business transaction. If the transaction currency differs from the account currency, a currency exchange is required.

Smart SAP Assistant

• Key Concepts: 
  Transaction currency is a term used in the FS-AM Account Management component of SAP. It is the currency in which a financial transaction is recorded and reported. This currency is usually the same as the company's local currency, but it can also be different if the company has operations in multiple countries. 
  
  How to use it: 
  In order to use transaction currency, a company must first define its local currency in SAP. This is done by entering the ISO code for the local currency into the system. Once this is done, all transactions will be recorded and reported in this currency. 
  
  Tips & Tricks: 
  When setting up transaction currency, it is important to make sure that all transactions are recorded and reported in the same currency. This will help ensure accuracy and consistency when reporting financial information. 
  
  Related Information: 
  Transaction currency is closely related to exchange rate, which is used to convert one currency into another. Exchange rate can be set up in SAP to ensure that all transactions are accurately converted into the desired currency.