The company code currency is defined in SAP as a local currency. If the GL account currency = CC currency, then the posting can be done in any currency. Otherwise, the posting can be done only in the currency that has been defined for this particular GL account.

Posting an Item in a Foreign Currency

When you post an item in a foreign currency, you enter the appropriate foreign currency key in place of the local currency key that is defaulted by the system. The currency key is entered in the Currency/Rate field of the document header. The system stores the amount in both local currency and foreign currency in each line item and checks whether the currency key has been defined and is therefore permitted. You will normally use an exchange rate defined in the exchange rate table. The system defaults the posting date as the translation date, and this translation date determines which exchange rate is taken from the exchange rate table.

The amount need be entered in only one currency; since the system translates this amount into the other currency automatically. In the line items, all amounts are saved in both currencies. These include the posting amount, tax amount, and cash discount amount. The currency exchange table can be overridden by entering an exchange rate manually (in the document header), or entering the local/foreign currency amount at the line item level. The translation date can also be entered manually to override the document date.

Posting an invoice in a Foreign Currency

When you post an invoice in a foreign currency, you enter the appropriate foreign currency key in place of the local currency key, USD that is defaulted by the SAP R/3. The system stores the amount in both local currency and foreign currency in each line item and checks whether the currency key has been defined and is therefore permitted. The amount is entered in only one currency, as the system translates this amount into the other currency automatically. Normally you will use the exchange rate defined in the exchange rate table.

If the exchange rate on the invoice is different than the default daily rate the currency exchange rate table can be overridden by entering an exchange rate manually (in the document header) or entering the local/foreign currency amount at the line item level.