What is base currency in SAP SRD-FIN-GL - FIN-General Ledger?

SAP Term: base currency

• Component: SRD-FIN-GL

• Component Name: FIN-General Ledger

• Description: In foreign exchange markets, the base currency is the first currency in a currency pair. The second currency is named the quote currency.

Smart SAP Assistant

• Key Concepts: 
  Base currency is a term used in SAP's Financial Accounting (FI) module. It is the currency in which all financial transactions are recorded and reported. The base currency is usually the local currency of the country in which the company operates. All other currencies are converted into the base currency for reporting purposes. 
  
  How to use it: 
  In SAP, the base currency is set up in the company code configuration. This is done by entering the ISO code of the base currency in the “Currency” field. Once this is done, all transactions will be recorded and reported in this currency. 
  
  Tips & Tricks: 
  When setting up a company code, it is important to ensure that the base currency is correctly set up. This will ensure that all transactions are recorded and reported accurately. 
  
  Related Information: 
  The base currency is used in conjunction with exchange rates to convert foreign currencies into the base currency for reporting purposes. Exchange rates can be set up in SAP's Financial Accounting (FI) module.