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

source currency - Overview

• Component: SRD-FIN-GL

• Component Name: FIN-General Ledger

• Description: Currency from which an amount is exchanged into another currency. The source currency is part of an exchange rate.

source currency - Details

• 
  Key Concepts: 
  Source currency is a term used in SAP's General Ledger component. It is the currency in which a transaction is originally recorded. This currency is used to record all transactions and is the basis for all other currencies that are used in the system. 
  
  How to use it: 
  In order to use source currency, you must first set up a source currency in the system. This can be done by going to the General Ledger component and selecting the “Source Currency” tab. From there, you can enter the currency code and description of the source currency. Once this is done, all transactions will be recorded in this currency. 
  
  Tips & Tricks: 
  When setting up a source currency, it is important to make sure that it is consistent with other currencies used in the system. This will ensure that all transactions are recorded accurately and that there are no discrepancies between different currencies. 
  
  Related Information: 
  Source currency is closely related to foreign exchange rates, as it is used to calculate exchange rates between different currencies. It is also related to other components of SAP such as Accounts Payable and Accounts Receivable, as these components use source currency when recording transactions.