What is 'local currency' in SAP SD - Sales and Distribution?

local currency - Overview

• Component: SD

• Component Name: Sales and Distribution

• Description: The currency used by a company code or a sales organization. This currency must be converted into another currency, such as the INTRASTAT currency in the EU, for calculating customs duties.

local currency - Details

• 
  Key Concepts: 
  Local currency is a term used in SAP Sales and Distribution (SD) to refer to the currency of the country in which a company operates. This currency is used to record all transactions and is the default currency for all accounts. It is also used to calculate exchange rates when dealing with foreign currencies. 
  
  How to use it: 
  In SAP SD, local currency is set up in the company code configuration. This setting will determine which currency is used for all transactions and accounts. Exchange rates can be set up in the system to convert foreign currencies into the local currency. 
  
  Tips & Tricks: 
  When setting up exchange rates, it is important to ensure that they are updated regularly to reflect changes in the market. This will ensure that all transactions are accurately recorded in the local currency. 
  
  Related Information: 
  For more information on setting up local currency and exchange rates in SAP SD, please refer to the official SAP documentation.