on 09-18-2009 10:03 PM
What is a Parallel Currency and Why do we need that? I would appreicate the explanation with an example.
Appreicated
YV
Hello Yedi,
For example in my country, our local currency is TRY (Turkish Lira). But I want to see EUR and USD amount for each transactional data on FI. So that I should activate parallel currency customizing via using OB22 and then system starts to keep EUR and USD amount for each transaction. You can see this value on FI tables which is field DMBE2 and DMBE3.
Otherwise, when you activate parallel currency, system keeps total balance for this currencies. You can get balance sheet report(F.01 transaction), profit & loss report(F.01 transaction) and G/L account balance(F:08 transaction) for parallel currency.
I hope this information enough for you.
Regards,
Burak
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Thank you Burak - thats a wonderful answer. Now I understand what's a Parallel Currency is - Why the management want's maintain in Parallel Currency? If the Corporate Wants then I believe we are going to Consolidate into Group Currency - Correct me if my Idea is wrong.
Again Thank your for your patience.
YV
Hi,
In Financial Accounting, in addition to the local currency, you can define a maximum of two parallel currencies for your company code. Since the settings of the company code are transferred for the leading ledger, your leading ledger is also managed in these parallel currencies as well as the local currency in this case. You can only specify the parallel local currencies specified in the leading ledger as parallel currencies in the non-leading ledgers. Alternative currencies are not possible.
From OB22 we can define parallel currencies.
Group Currency
You define the group currency when you define your client. group currency is used in the consolidated financial statements.
Before the consolidation process can be completed, all values in the individual financial statements must be translated from the local or transaction currency into group currency.
Global Company Currency
You define the global company currency when you define the company assigned to your company code.
A currency used for an internal trading partner.
Hard Currency
You define the hard currency when you define the country assigned to your company code.
A country-specific second currency used in countries with high rates of inflation
Index-Based Currency
You define the index-based currency when you define the country to which your company code is assigned.
A country-specific theoretical currency used in some countries with high inflation as a comparison currency for purposes of statutory reporting
If you manage your ledgers in parallel currencies, this has the following effects: During posting, the amounts are also saved in the parallel currencies.
The amounts are translated automatically, but you can also enter them manually.
Transaction figures for the G/L accounts are also updated in the parallel currencies.
Exchange rate differences during clearing also appear in the parallel currencies.
You can also perform a foreign currency valuation in the parallel currencies.
regards,
Santosh kumar
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