Professional Documents
Culture Documents
company code. The main purpose of using parallel currencies is to maintain the G/L accounts in different
currencies. The companies which have subsidiaries in different countries use parallel currencies to
update the foreign business transactions in different foreign currencies (parallel currencies).
We can use various currency types for the parallel currencies such as Group currency, Global Company
currency, Index based currency and Hard currency.
The purpose of using parallel currencies in Asset accounting is to maintain the fixed asset values such as
APC and Depreciation in different currencies.
Here you define the additional currencies that you want to use
Depreciation areas 1, 2 and 3 i.e. Book Depreciation, Special tax Depreciation and Derived Depreciation are already
defined in the system. Just select 0, Area do not post for Depreciation area 2
We should always copy the depreciation areas from the real depreciation area when creating depreciation
areas for the parallel currencies. Since, we are using two parallel currencies i.e EUR and USD. We
should define two depreciation areas for parallel currencies for each of the depreciation areas. i.e we
should define 1 depreciation area for USD and 1 depreciation area for EUR for both Book Depreciation
area and Special tax depreciation area. Therefore we will have 4 depreciation areas for parallel
currencies 2 for Book depreciation and 2 for Special tax depreciation.
In the same way create one more depreciation area for parallel currency EUR for Book Depreciation
Depreciation areas for parallel currency USD for Special Tax Depreciation
In the same way create one more depreciation area for parallel currency EUR for Special Tax
depreciation
Here we assign foreign currencies for depreciation areas in which we want to them to be valuated.