What is 'local currency' in SAP PSM-FM - Funds Management?

local currency - Overview

• Component: PSM-FM

• Component Name: Funds Management

• Description: Currency of the company code in which an earmarked funds document is posted.

local currency - Details

• 
  Key Concepts: 
  Local currency is a term used in SAP Funds Management (PSM-FM) to refer to the currency of the country in which a company operates. This currency is used to record all financial transactions and is the basis for all financial reporting. 
  
  How to use it: 
  In SAP Funds Management, local currency is used to record all financial transactions and is the basis for all financial reporting. All transactions must be recorded in the local currency, and any foreign currency transactions must be converted into the local currency before being recorded. 
  
  Tips & Tricks: 
  When recording foreign currency transactions, it is important to ensure that the exchange rate used is up-to-date and accurate. This will ensure that all financial reports are accurate and reliable. 
  
  Related Information: 
  For more information on local currency in SAP Funds Management, please refer to the SAP Help Portal or contact your SAP support team.