SAP Financial Accounting (SAP FI) Practice Exam

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Which scenario allows only posting in GL accounts with a currency different from the company code currency?

When the GL account balance is managed in local currency
When the account is initialized in foreign currency
When the GL account has a different currency than the company code currency
When currency conversion is activated

The correct answer is: When the GL account has a different currency than the company code currency

The scenario that permits posting in General Ledger (GL) accounts with a currency that differs from the company code currency is when the GL account has a different currency than the company code currency. This is a fundamental aspect of how currencies are managed in SAP Financial Accounting. In SAP, each company code is associated with a specific local currency, commonly referred to as the company code currency. However, it is possible to create GL accounts that operate in a different currency, allowing transactions to be recorded and managed in that foreign currency. By enabling postings in a GL account set to a different currency, businesses can effectively handle transactions that involve international dealings or other currencies, reflecting accurate financial information associated with those transactions. This flexibility is crucial for organizations that operate in multiple currencies, as it aids in managing and reporting financial data accurately across different currency environments. The ability to post transactions directly in foreign currencies streams the process of financial accounting, ensuring that all relevant financial data is captured effectively. The other alternatives relate to different scenarios concerning currency management or initialization processes that do not necessarily allow for posting in a currency different from the company code currency. For instance, managing balances in local currency or initializing accounts focus on specific setups rather than the core ability to post in a different currency.