The functional currency of a company is the currency of the primary economic environment in which the company operates. The functional currency of a company is typically the currency of the country in which the company's headquarters are located. For companies that operate in multiple countries, the functional currency is typically the currency of the country that generates the majority of the company's revenue.
What is a functional currency in SAP?
The functional currency in SAP is the currency in which an organization conducts its business. This is typically the currency of the country in which the organization is headquartered, but may also be the currency of another country in which the organization has a significant presence. The functional currency is used to value transactions and report financial results. Does a group have a functional currency? Yes, a group has a functional currency. The functional currency is the currency of the primary economic environment in which the group operates. It is typically the currency of the country where the group's headquarters are located. The functional currency can also be the currency of the country where the group generates the majority of its revenues.
What is functional and transactional currency?
A functional currency is the currency of the primary economic environment in which a company operates. It is used to record transactions and to prepare financial statements. For companies operating in multiple countries, the functional currency is typically the currency of the country where the company's headquarters are located.
A transactional currency is the currency in which a company enters into transactions. For companies operating in multiple countries, the transactional currency is typically the currency of the country where the transaction takes place. Which of the following provides the best definition of a functional currency? A functional currency is the currency of the primary economic environment in which a company operates. What are the 4 factors for exchange rate determination? The four main factors that determine exchange rates are:
1) The economic conditions of the two countries involved
2) The relative inflation rates of the two countries
3) The interest rates of the two countries
4) The political stability of the two countries