Skip to Content
Author's profile photo Jignesh Mehta

Local & Global Currency

We all know that we can create Invoice in any currency, but the posting in Finance happens only in Company Code Currency.

Now let take example of Company like Domino’s Pizza. It is listed in India & also has a Head Office in US or some other country. This means that it has to sumbit Balance Sheet in INR in India & in USD in United States.

Also take example of Accenture. It’s Registered Office is in Ireland, Head Office is in US & it also has a Indian Subsidiary. This means it has to report in INR in India, in USD in US & in EUR in Ireland.

How to handle situation like this when the posting in SAP in Finance happens only in Company Code’s Currency, which in above case would be INR.

SAP has introduced facility of Local & Global Currency for this purpose. For each Company Code we can define 1 Local Currency + 2 Global Currency in the IMG link below:

IMG – Financial Accounting (New) – Financial Accounting Global Settings (New) – Ledgers – Ledger – Define Currencies of Leading Ledger


Here for each Company Code you can define a Local Currency & 2 Additional Local Currencies i.e. Global Currency. You can also specify Exchange Rate for these Global Currencies.

Now, this means that every time a Financial Document is posted, system will generate values in three currency: 1 Local Currency + 2 Global Currency.

This also means that whenever a Sales Invoice is posted to Accounts, system will post the value in 3 different currency.

The following fields are updated in BSEG Table:

BSEG – DBMTR – Amount in Local Currency

BSEG – DMBE2 – Amount in 2nd Local Currency

BSEG – DMBE3 – Amount in 3rd Local Currency.

Thus in the below Accounting Document of Sales Invoice, you have option of displaying the Figures in Local, Document & Global Currency.


Also the Global Currency is different than Invoice Currency. Invoice currency may be Australian Dollars but the posting will happen in Local Currency (say INR) + Global Currency (say USD + EUR) .

Disclaimer: The names of Companies used above are only for example purpose & I don’t know anything about their legal status.

Hope this helps,


Jignesh Mehta

Assigned Tags

      You must be Logged on to comment or reply to a post.
      Author's profile photo Former Member
      Former Member

      Great info Jignesh. Thanks for posting.

      Author's profile photo Former Member
      Former Member

      Dear Jiginesh sir very very thank you so much For sharing Your knowledge..

      Author's profile photo Former Member
      Former Member

      The field name is DMBTR, not DBMTR