What is document currency in SAP SD - Sales and Distribution?

SAP Term: document currency

• Component: SD

• Component Name: Sales and Distribution

• Description: A currency in which the total values in a sales and distribution document are calculated.

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• Key Concepts: 
  Document currency is a term used in SAP Sales and Distribution (SD) to refer to the currency in which a document is created. This currency is used to determine the pricing of the document, as well as any taxes or other charges that may be associated with it. The document currency is usually the same as the company's local currency, but it can also be different if needed. 
  
  How to use it: 
  In SAP SD, the document currency is set when a document is created. This can be done manually by entering the currency code in the relevant field, or it can be set automatically based on the customer's default currency. Once set, the document currency cannot be changed. 
  
  Tips & Tricks: 
  When creating documents in SAP SD, it is important to ensure that the document currency is set correctly. This will ensure that all pricing and taxes are calculated correctly and that any payments made are done so in the correct currency. 
  
  Related Information: 
  The document currency is closely related to exchange rate types, which are used to convert between different currencies when necessary. Exchange rate types can be configured in SAP SD and are used to determine how prices and taxes are calculated when different currencies are involved.