In which country u r working that is called local currency 
and when you select local currency of the country then all 
transaction will be made into such currency

Hi 

I am SAP functional consultant.

if we select local currency in G/L account all the balances 
of that particular account will disply in that country 
curren





cy. for example company is in india then currency will 
display in rupees. if company is in us then currency then 
it will display in dollars

To Shashi Ranjan Pandey:

I don't give a fuck if you are a SAP functional consultant
... answer the fucking question.

Local currency in G/L is taken for balancing point.Setting 
local currency indicator in GL master account affects the 
way A/c Balances are stored in GL summary. If this 
indicator is set, the GL balances are updated only in local 
currency.

Foreign Currency valuation of GL accounts where the 
indicator "only balance in local crcy" is set is affected 
in the following manner depending upon the type of account 
 
* If the account for which only balance in local currency 
is set, is an open item managed account, i.e: the 
indicator "Open Item Management" is also set in the GL 
account master.      
 
* If the account for which only balance in local currency 
is set, is a non-open item managed account, i.e: the 
indicator "Open Item Management" is also not set in the GL 
account master.