What is invoice currency in SAP FS-PM - Policy Management?

SAP Term: invoice currency

• Component: FS-PM

• Component Name: Policy Management

• Description: For products using multi-currency, this is the currency that is set in the contract for making payments. The amount for invoicing is calculated on the basis of the premium in risk currency.

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  Key Concepts: 
  Invoice currency is a feature of the SAP FS-PM Policy Management component. It is used to define the currency in which an invoice is issued. This currency can be different from the currency of the underlying policy or contract. The invoice currency is used to calculate the amount due on an invoice and to determine the exchange rate for any foreign currency transactions.
  
  How to use it: 
  The invoice currency can be set up in the FS-PM Policy Management component. To do this, go to the “Currency” tab and select the desired currency from the drop-down list. Once selected, this will be the default currency for all invoices issued for that policy or contract. 
  
  Tips & Tricks: 
  When setting up an invoice currency, it is important to consider any foreign exchange rate fluctuations that may occur between the time of invoicing and payment. To minimize any potential losses due to exchange rate fluctuations, it is recommended to set up a hedging strategy or use a foreign exchange provider. 
  
  Related Information: 
  For more information on setting up an invoice currency in SAP FS-PM Policy Management, please refer to the SAP Help documentation at https://help.sap.com/viewer/product/FS-PM/latest/en-US