Local currency (SAP Business One)

The currency in SAP Business One, in which the Main books of the company.
All reports are displayed in the local currency and all foreign currency transactions are automatically converted into the local currency. The Local currency enables the calculation of balances for accounts in several currencies and/or Business partner. It is therefore the common denominator for all currencies.

1. definition

the Local currency is the national currency of a company in which the statutory accounting takes place. It is used for the System initialisation and serves as Base currency for all financial transactions.

2. determination of the local currency

The local currency is shown under Administration > System initialisation > Company details > Basic initialisation defined.
Once defined, the local currency can be no longer changed become.

3. system currency vs. local currency

System currencyThe system currency may differ from the local currency, particularly in the case of internationally active companies.
Double balance managementBookings are automatically entered in both Local currency as well as in System currency led.

4. importance for bookings

Account balance: The balance of an account is shown in Local currency and system currency displayed.
Foreign currency transactions:
- Amounts in foreign currency are converted into the local currency.
- On Exchange rate is required to create vouchers in foreign currency.
Exchange rate differences:
- Realised exchange rate differences are calculated automatically for incoming and outgoing payments.
- To the Closing date Open items in foreign currency are recognised at the current exchange rate reassessed.
- The system suggests Adjustment postings which can be carried out in the local currency.

5. display in vouchers

Amounts can be paid in Local currency, system currency and Foreign currency are displayed.
In journal entries the local currency is used if the account is held in this currency.

6. account currency

the Account currency can be used on Local currency, a fixed foreign currency or "All currencies" be adjusted.
With "All currencies" vouchers can be created in any currency, while the account balance is still displayed in the local currency.