What is default exchange rate type in SAP LO-GT - Global Trade Management?

SAP Term: default exchange rate type

• Component: LO-GT

• Component Name: Global Trade Management

• Description:

Smart SAP Assistant

• Key Concepts: 
  Default exchange rate type is a feature of SAP's Global Trade Management (LO-GT) component. It allows users to define a default exchange rate type for each currency in the system. This exchange rate type is then used to calculate the value of transactions in that currency. 
  
  How to use it: 
  To set up a default exchange rate type, go to the Global Trade Management (LO-GT) component in SAP. Select the currency you want to set up a default exchange rate type for and then select the exchange rate type you want to use. Once you have selected the exchange rate type, click “Save” and the default exchange rate type will be set up for that currency. 
  
  Tips & Tricks: 
  It is important to select an appropriate exchange rate type for each currency in order to ensure accurate calculations. If you are unsure which exchange rate type to use, consult with your company’s finance department or an expert in international finance. 
  
  Related Information: 
  For more information on setting up default exchange rate types in SAP’s Global Trade Management (LO-GT) component, please refer to SAP’s official documentation.