Enterprise Resource Planning Blogs by SAP
Get insights and updates about cloud ERP and RISE with SAP, SAP S/4HANA and SAP S/4HANA Cloud, and more enterprise management capabilities with SAP blog posts.
Showing results for 
Search instead for 
Did you mean: 


This blog post shares process of setting up functional currency for starter pack  country.

Functional currency is used for country or industry specific needs as an additional valuation currency besides local currency (the legal currency of the entity in its location) and group currency (the currency required by regulation or law in the group consolidation).

The setting of functional currency is a released function on  SAP S/4HANA Cloud. The relevant documentation can be found here.

For starter pack country, you can follow the same configuration steps to use functional currency valuation.


Before you start

The functional currency can be set only for company codes that have no accounts posting and no valuation related master data.

It is important to understand that functional currency is not supported by some of the UIs or reporting. Here we list some of the localization relevant reports which are not supporting functional currency, however this is not the complete list SAP S/4HANA Cloud and we will update in this blog only based on limited scope validation in localization tool kit.

  1. SAP FIORI app: Display Journal Entries: in T account view.

  2. Advance Return for Tax on Sales/Purchases Report (RFUMSV00). SAP note 2584164


  1. On the SAP FIORI dashboard, navigate to Define Currency Settings for Ledgers and Company Codes under Finance -> General Settings -> Currencies. You can find it in the app Manage Your Solution under Configure Your Solution: Finance ->General Setting ->Currencies ->Define Currency Settings for Ledgers and Company Codes.

  1. On the Overview screen for Currency Types, crease a new entry for Functional Currency type.

  1. Set the company codes for which the function currency valuation is needed, against the Currency Conversion Settings for Company Codes.

  1. Set the configurations related to the newly created ledger and functional currency against Company Code Settings for the Ledger.


Using functional currency.

After the setting is completed and saved. The accounting journal entry made to the corresponding company code and ledger will includes functional currency as additional valuation. For example, in the app Manage Journal Entries, the functional currency can be selected in the Entry view.

The functional currency will also be available in many reports and valuation related process. For details you can check in the SAP knowledge base for corresponding note in the country or industry.

Similar to the example above, for the company code you can use the functional currency in transactions and reports.


Functional currency was not included in the starter pack configuration delivery, however, you can manually configure the functional currency referring to this blog post.




1 Comment