Define Exchange Rate Types

In this IMG activity you create optional exchange rate types for cost center planning.

The exchange rate type stores exchange rates for different purposes on the same date. Existing entries may not be deleted.

• When exchange rate conversions take place between many different currencies, using a base currency can simplify maintenance of exchange rates. The affected exchange rate type need only then be given in relationship to the base currency for all currencies. All exchange rate conversions take place in two steps, using the base currency.

• A bank selling rate can be maintained along with a bank buying rate.

The buying rate is that under which the average buying rate is recorded.

When maintaining a buying rate, enter the appropriate currency type for the average rate. This reduces the amount of work required in the conversion table.

The selling rate is that under which the average selling rate is recorded.

The user need only maintain the conversions for the average rate. The conversion occurs by determining the average rate and then adding the difference between rates onto this rate.

• If an entry for a currency conversion is missing, the indicator "Invert" ensures that the reversed currency relationship, should one exist, is drawn upon for the conversion.

Standard settings

The standard R/3 System includes exchange rate type P.

Note

• When you create a controlling area, the R/3 System creates version 000 automatically for 5 years. Rate type P is defaulted.

• The R/3 System uses rate type M for currency conversion during postings and clearings of documents.

Recommendation

Before creating your own exchange rate types, check those offered by SAP and use them if appropriate.

Activities

1. Check whether you require further exchange rate types for cost center planning in different versions.

2. Create additional exchange rate types if necessary.

Note on transport

Exchange rate types can be transported manually via the menu path "Table view -> Transport".