Where do you assign the currency type?

Question

Options

• ACompany
• BAccounting principle
• CLedger
• DValuation area

• A
  9% (5)
• B
  4% (2)
• C
  73% (41)
• D
  14% (8)

Explanation

In SAP Financial Accounting, the currency type is assigned at the Ledger level (New General Ledger). Each ledger can be configured with one or more currency types - such as local currency, group currency, or hard currency - allowing parallel valuation under different accounting standards.

Why the distractors are wrong:

• A. Company: A company is a legal consolidation unit; currency type configuration does not occur here.
• B. Accounting Principle: An accounting principle (e.g., GAAP, IFRS) is assigned to a ledger, not the place where currency type is defined.
• D. Valuation area: Valuation areas belong to Materials Management for inventory valuation purposes and are unrelated to FI currency type assignment.

Memory tip: Think "Ledger = Locale of currency" - just as a physical ledger book tracks amounts in a specific currency, an SAP ledger is where you define which type of currency will be tracked.

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