General Ledger Currency

For each account, you can specify the currency in which it can be posted. To do this, you enter a currency key in the master record. If you have entered the currency key for local currency, you can post to the account in any currency. If you have entered the currency key for a foreign currency, you can post to the account in this foreign currency only. You have defined the local currency for each company code. This currency is defaulted automatically when you create a G/L account. For each account, the transaction figures are always updated and displayed in local currency

If you enter the currency key for a foreign currency in the master record, the transaction figures and the account balance of an account are managed in both the local currency and the specified foreign currency.

If you have set up a foreign exchange account at a bank, it is a good idea to manage it in your accounts in that currency as well. By doing this, you can compare the transaction figures with the account balance on the bank statement.