Define Exchange Rates

In this IMG activity you define currency translations.

The exchange rates are required for plan and actual postings in several SAP modules in order to:

• translate foreign currency amounts when posting or clearing

• manually check a given exchange rate

• determine the profit and loss from exchange rate differences

• valuate open items in foreign currency

• valuate the foreign currency balance sheet accounts

• determine the amount in controlling area currency, when working with various controlling area currencies

• allow for differing controlling area, sender, or receiver currencies when settling internal orders

Exchange rates are stored according to time; the rates are valid as of the specified date.

Note

Exchange rate definition in CO should be reconciled with that in FI.

The SAP System uses exchange rates stored under the translation rate type M for currency translations in posting and clearing actual transaction data. These exchange rates are valid for all company codes.

For translation of plan postings, you define the exchange rate type that the SAP System uses for translations in plan. This exchange rate type (fiscal year dependent) is defined in the version.

Requirements

You have defined the currency key required.

If you need custom exchange rate types in plan, you must create them beforehand. The standard SAP System includes exchange rate type P.

The exchange rate relations for currency translation are only displayed here. To use other exchange rate relations, you must define them first.

Standard settings

In the standard SAP System, exchange rates are set as examples with exchange rate type M.

Recommendation

SAP recommends using the minimum number of exchange rates required in your system, to diminish the system load.

Activities

1. Maintain current exchange rates for exchange rate type M and for your own exchange rate types. Delete the entries you do not need.

2. Define the timeframe in which the currency translation is to be maintained.

Note on transport

You can transport exchange rates manually by choosing "Table view -> Transport".