The currency type determines the currency or valuation view in which the amounts are to be displayed or planned.
Note: Whereas actual data can be updated simultaneously in all the combinations of currency type and valuation that are described below, planning data is always updated in one currency only - the currency specified for that particular plan version.
Note also that updating actual data in multiple combinations of currency and valuation significantly increases your data volume with each additional combination.
Operating concern currency
In costing-based Profitability Analysis, actual data is always updated in the operating concern currency.
You can change the operating concern currency as long as no data has been posted in the operating concern. Once data has been posted, however, a change in the operating concern currency would cause the existing data to be interpreted as if it were posted in the new currency (for example: USD 1000.00 in old currency -> DEM 1000.00 in new currency).
Company code currency
In addition to the operating concern currency, you have the option of storing all data in the currency of the relevant company code as well. This makes sense if your organization operates internationally and deals with exchange rates that change daily. It allows you to avoid differences due to different exchange rates and lets you reconcile your CO-PA data directly with FI.
You can activate the company code currency at any time. However, this will not affect data that has already been posted.
If you deactivate the company code currency, you can no longer use plan versions and reports that use the company code currency.
Profit center valuation
In addition to storing data in these two currencies using the legal (= company code) valuation view, you can also store data in both of these currencies valuated from the viewpoint of individual profit centers.
This yields the following possible combinations of valuation view and currency type (so-called valuation approaches):
Currency type Valuation view
Operating concern currency Legal valuation
Company code currency Legal valuation
Operating concern currency Profit center valuation
Whereas actual data is updated simultaneously in all the selected combinations of currency type and valuation, plan data is always updated in one currency only - the currency specified for that particular plan version.
Note that updating actual data in multiple combinations of currency and valuation significantly increases your data volume.