22.Define Additional Local currencies (Optional)

You can have 2 more parallel currencies for a company code in addition to one defined above. We can thus have 3 currencies for a company code.

To configure parallel currencies for a company code the path is:-

IMG > Financial Accounting > Financial Accounting Global Settings > Company Code > Multiple Currencies > Define Additional Local Currencies

In this case, you can choose between:

•Group currency
Group currency is the currency which is specified in the client table or which is to be entered there.

•Hard currency
Hard currency is a country-specific second currency which is used in countries with high inflation.

•Index based currency
Index-based currency is a country-specific fictitious currency which is required in some countries with high inflation for external reporting (for example, tax returns).

•Global company currency
Global company currency is the currency which is used for an internal trading partner.

For the additional currencies, define the following data:

•Currency type
The currency type specifies the role of the additional currency. An example of this would be the group currency.

•Exchange rate type for translation
The exchange rate type determines which exchange rate stored in the system is used for calculating the additional amount fields. As with the local currency, you can use the exchange rate type M (average exchange rate) or any other exchange rate type.
•Base currency for translation
The amounts in the additional currencies can be calculated based on the document currency or on the local currency.
•Date for translation

For translating amounts, the exchange rate can be determined according to the translation date, the document date or the posting date
Additional activities:-

The group currency must be stored in the client.

update the following:-

Enter the second and third currency