What is average exchange rate in SAP SRD-FIN-GL - FIN-General Ledger?

SAP Term: average exchange rate

• Component: SRD-FIN-GL

• Component Name: FIN-General Ledger

• Description: The arithmetic average of the exchange rates between to currencies over a certain period of time

Smart SAP Assistant

• Key Concepts: 
  Average exchange rate is a feature of the SAP General Ledger component that allows users to define a single exchange rate for multiple currencies. This rate is used to convert foreign currency transactions into the company’s local currency. The average exchange rate is calculated by taking the sum of all exchange rates for a given period and dividing it by the number of exchange rates used. 
  
  How to use it: 
  To use the average exchange rate feature in SAP General Ledger, users must first define the currencies they wish to use and set up an exchange rate table. Once this is done, users can enter transactions in foreign currencies and the system will automatically convert them into the company’s local currency using the average exchange rate. 
  
  Tips & Tricks: 
  It is important to note that the average exchange rate should only be used when there are multiple transactions in different currencies that need to be converted into a single currency. If there are only a few transactions, it may be more accurate to use the current market rate instead. 
  
  Related Information: 
  For more information on using the average exchange rate feature in SAP General Ledger, please refer to SAP Help documentation or contact your local SAP support team.