What is 'conversion difference' in SAP SBO - SAP Business One?

conversion difference - Overview

• Component: SBO

• Component Name: SAP Business One

• Description: The difference between account balances in the local currency and a foreign currency. This can occur when transactions denominated in a foreign currency are translated calculated according to the corresponding exchange rate on the transaction date and then at the end of a financial period based on the actual exchange rate.

conversion difference - Details

• 
  Key Concepts: 
  Conversion difference is a term used in SAP Business One (SBO) to refer to the difference between the amount of a transaction in one currency and the amount of the same transaction in another currency. This difference is caused by fluctuations in exchange rates. 
  
  How to use it: 
  In SBO, conversion difference is used to calculate the amount of a transaction when it is converted from one currency to another. The conversion difference is calculated by subtracting the amount of the transaction in the original currency from the amount of the same transaction in the new currency. 
  
  Tips & Tricks: 
  When calculating conversion difference, it is important to remember that exchange rates can fluctuate quickly and significantly. Therefore, it is important to use up-to-date exchange rates when calculating conversion difference. 
  
  Related Information: 
  For more information on conversion difference and how it is used in SBO, please refer to SAP's official documentation on the topic.