SAP Financial Accounting (SAP FI) Practice Exam

Which of the following statements is true regarding GL accounts and foreign currency?

1. All GL accounts must be kept in local currency

2. GL accounts can be posted in any currency without restriction

3. GL accounts may have different currencies than company codes

4. GL accounts cannot use automatic postings

The correct answer is: GL accounts may have different currencies than company codes

The statement that GL accounts may have different currencies than company codes is accurate because in SAP Financial Accounting, while each company code is assigned a local currency, GL accounts can be set up to manage transactions in both local currency and foreign currencies. This flexibility allows organizations to capture financial information in the currency of the transaction, which is essential for businesses operating in multiple currency environments or conducting international transactions. This capability aids in accurate financial reporting and analysis, as it allows for the consolidation of data in various currencies while still maintaining the integrity of the local currency records. Having GL accounts that can reflect transactions in multiple currencies ensures that financial statements can be generated that accurately reflect the economic reality of the business operations in various regions. This functionality is crucial in a globalized economy, where businesses frequently deal with foreign suppliers, customers, and partners. Therefore, recognizing that GL accounts can be utilized in different currencies than those of their respective company codes aligns with the operational needs and financial practices of modern enterprises.