Question

In addition to the local and global currency in the universal journal, how many freely defined currencies can you assign per company code and ledger.

1) 3
2) 5
3) 8
4) 10

Answer 1

In SAP S/4HANA, a company can assign up to eight freely defined currencies per company code and ledger, in addition to the local and global currency, offering flexibility for global financial management and reporting. The correct option is 3.

Step-by-step explanation:

In the context of SAP S/4HANA, which is the subject behind this question, in addition to the local currency (company code currency) and the global currency (group currency), you can assign up to eight freely defined currencies per company code and ledger.

This enables a business to manage its financials in multiple currencies simultaneously, which is crucial for companies operating in a global environment.

This feature allows businesses to comply with both local and global financial reporting requirements and provides more flexibility in handling transactions in different currencies.

You simply configure these currencies in the ledger setup, and once they are defined, currency amounts can be converted and reported according to your business needs. The correct option is 3.