Costs may be incurred in one country, for a local delivery unit in another country, for a project or proposal managed out of another country, and then delivered to a customer in a fourth country. If there is no currency union like in the EU, this can lead to the costs being tracked in up to four different currencies:

• Source currency represents the cost of that material, labor, travel or other direct cost in the original source e.g. vendor, resource group cost/billing rate or delivery organization currency. You should include the source currency as a dimension when reporting on cost in source currency
• Local currency represents the cost of that material, labor, travel or other direct cost in the currency used by the local delivery organization, the leading unit within your organization for this particular estimate. Local currency differs from the company currency when you either deliver one program out of multiple business units in different countries, or because you want to report in both local and company currencies at the same time
• Company currency represents the cost in the currency of the primary delivery organization or your internal group which is leading this capital project estimate, program or proposal. There is one company currency for the entire proposal or project
• Customer currency represents the currency the customer requested the proposal to be submitted in, for external bids only.

Costs are automatically converted into all four currencies using SAP or proposal-specific exchange rates. You can define your own 'rate table' or exchange rate type to use from SAP in the project or proposal type set-up - with the option for different exchange rate types when converting from source to local, from local to company and from company to customer currencies - or in the company code table. You can either use different exchange rate tables or types by leading company or based on source/local, local/company and company/customer exchange rates.

To view the costs in these different currencies select one, two or three of the cost measures in the window to "Change Rows & Columns" of the costing workbench.

1. Cost in source currency and in company currency have both been selected as measures in the example above
2. Cost in company currency and customer currency can be displayed with the appropriate currency symbol, as shown above. The costs in source currency and local currency can vary from one row to the next so a separate column for the source and/or local currency code is required
3. When cost in source or local currency was selected as a measure, the source currency was automatically pulled in as a dimension, resulting in separate sub-totals for cost in each source currency, within each Phase & WBS combination (in this case). It is recommended not to remove the automatically added dimensions for "Source Currency" or "Local Currency" unless you know all source or local currency costs are for example in USD.