What is lead currency in SAP FS-BA-PM-AFP - Accounting for Financial Products?

SAP Term: lead currency

• Component: FS-BA-PM-AFP

• Component Name: Accounting for Financial Products

• Description: The main currency of a transaction. The lead currency is stored in the transaction. The lead currency influences the determination of the fair value.

Smart SAP Assistant

• Key Concepts: 
  Lead currency is a term used in the Accounting for Financial Products (AFP) component of SAP's Financial Services (FS) Business Application (BA). It is the currency that is used to record all transactions and balances in the system. It is also used to calculate exchange rates and to convert amounts from one currency to another. 
  
  How to use it: 
  Lead currency is set up in the system by entering the currency code and exchange rate in the relevant fields. This information can be found in the system's master data. Once set up, all transactions and balances will be recorded in this currency. Exchange rates can also be updated regularly to ensure accurate conversion of amounts from one currency to another. 
  
  Tips & Tricks: 
  It is important to select a lead currency that is stable and widely used, as this will make it easier to convert amounts from one currency to another. It is also important to ensure that exchange rates are updated regularly, as this will ensure accurate conversion of amounts from one currency to another. 
  
  Related Information: 
  For more information on lead currency, please refer to SAP's documentation on Accounting for Financial Products (AFP). This documentation provides detailed information on how to set up and use lead currency in the system.