SAP

SAP is a German software development and consulting corporation, which provides enterprise software applications and support to businesses of all sizes globally.
Headquartered in Walldorf, Germany, with regional offices around the world.
Third Largest Company in the world next to IBM.

There are 5 types of currency in SAP r/3 system.
1. Group Currency: You define Group Currency when you define Client (SCC4)

2. Global Company Currency: You define Global Company Currency when you define Company that is assigned to your company code.

3. Hard Currency: YOU define Hard Currency when YOU define the Country that your Company code assigned to. A hard currency is used in countries with high inflation.


4. Index-Based Currency: You define IB Currency when You define Country that your company code assigned to. An index-based currency is stipulated for external reporting (for example, tax returns), in some countries with high inflation.

5. company code Currency: You define the company code Currency when you define Company Code.
Now with this 5 types of Currency, you can maintain a Parallel Currency in your system under the SPRO – Multiple Currency. SAP give you to maintain 3 Parallel Currencies, it means when you post a transaction using Trans Currency, system will convert to the others curr that you set in this setting.