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

SAP Term: currency conversion profile

• Component: SRD-FIN-GL

• Component Name: FIN-General Ledger

• Description: Setting made for a company to specify how a business transaction is converted from a transaction currency to the local currency: With which conversion type ask rate, bid rate, or middle exchange rate, With which date document date, posting date, or conversion date, and With which exchange rate type.

Smart SAP Assistant

• Key Concepts: 
  A currency conversion profile is a tool used in SAP's General Ledger Accounting component to define the exchange rate type and the rounding precision for currency conversions. It also allows users to specify the exchange rate source, such as a fixed rate or a rate from a financial market. 
  
  How to use it: 
  To use a currency conversion profile, first create the profile in the SAP system. This can be done by going to the “Define Currency Conversion Profile” transaction in the General Ledger Accounting component. Once the profile is created, it can be assigned to a document type or an account group. This will ensure that all documents or accounts associated with that document type or account group will use the specified currency conversion profile. 
  
  Tips & Tricks: 
  When creating a currency conversion profile, it is important to consider the exchange rate source and the rounding precision. The exchange rate source should be chosen based on the accuracy needed for currency conversions, while the rounding precision should be chosen based on how precise you need your conversions to be. 
  
  Related Information: 
  For more information on currency conversion profiles, please refer to SAP's documentation on General Ledger Accounting. Additionally, there are many online tutorials and videos available that provide step-by-step instructions on how to create and use currency conversion profiles in SAP.