Process documentationCurrency Exchange Locate this document in the navigation structure

 

This process enables you to use the currency translation function to post items directly if their transaction currency differs from the account currency. This means that payment orders in different currencies are possible between accounts, without having to involve an external system.

In Customizing for currency translation, that is available for payment items, information items, and prenotes, for example, you can choose between the following settings:

  • Currency Customizing in SAP NetWeaver

  • Currency Customizing in Financial Services

In the standard system, the currency Customizing for Financial Services is provided for currency exchange. If you only use the functions of Transaction Banking, you can use both the currency Customizing for Financial Services, and the currency Customizing for SAP NetWeaver. If you also use Analytical Banking, use the currency Customizing for Financial Services.

For more information, see the documentation for the Customizing activity Define Currency Customizing and under Currency Exchange Rates.

Note Note

You also have the option of enhancing the currency transaction function with the individual spreads function.

End of the note.

In addition, you can use the forex position postings function to generate all the required offsetting postings for payment items on the forex position accounts in the account management system. Using derivation rules, the system determines the assigned forex position accounts and then generates an offsetting posting on these accounts, each in the transaction currency and account currency, for each currency exchange. This takes place realtime.

This graphic is explained in the accompanying text.

Prerequisites

Customizing

  • In Customizing for Account Management (FS-AM), you have chosen Basic Settings, and in the Customizing activity Activate Special Components, you have activated the Currency Translations (CTL) and/or the Forex Position Postings (CEX) functions.

  • In the Customizing for Account Management (FS-AM), you have chosen   Item Management   Basic Functions   Currency Exchange   Define Transaction Type Groups for Currency Exchange   and defined transaction type groups for the currency exchange.

  • In Customizing for Account Management (FS-AM), you have chosen   Item Management   Basic Functions   Transaction Types and Transaction Type Groups   and assigned a suitable transaction type group for currency exchange to those transaction types for which you want the system to exchange the currency. Optionally, you have also activated the currency exchange check.

    • Enter and assign transaction types for payment items

    • Enter transaction types for information items

    • In Customizing for Account Management (FS-AM), you have chosen   Item Management   Prenote   Define Prenote Types   and assigned a suitable transaction type group for currency exchange to those prenote types for which you want the system to exchange the currency. Optionally, you have activated the currency exchange check.

Process

The process runs as follows:

This graphic is explained in the accompanying text.

Process Flow of Currency Exchange:

The system processes a payment order. If the currencies of the payment item (transaction currency) and the target account (account currency) are different, the process starts.

Note Note

When you create a payment order in the dialog, you can specify the exchange rate implicitly by entering the amount in transaction currency and in account currency. The system calculates the exchange rate internally from the two amounts.

End of the note.

If you create a posting or a payment order externally, meaning using a BAPI, you can transfer all fields that are relevant for the currency exchange, including the exchange rate.

The process steps 1 - 3 describe the currency translation, the process steps 4 - 5 the forex position postings.

  1. Determine exchange rate types (SAP FS-AM)

    The system uses derivation rules to determine the exchange rate types for the amount of a payment item.

  2. Determine exchange rate (SAP FS-AM)

    The system uses the exchange rate types supplied in the BAdI: Currency Exchange to determine the exchange rate for the amount of a payment item.

  3. Translate amount into target currency (SAP FS-AM)

    The system uses the exchange rate supplied in the BAdI: Currency Exchange to translate the amount to be posted for the payment item from the source currency to the target currency.

  4. Determine forex position accounts (SAP FS-AM)

    The system uses derivation rules to determine the forex position account that is assigned to the bank posting area, account currency, offsetting currency, and free differentiation characteristic.

  5. Generate interim postings on forex position accounts (SAP FS-AM)

    The system generates a credit memo and a debit memo each on two forex position accounts.

Result

The system has translated the payment item from the transaction currency to the target currency and generated the required postings on forex position accounts.

The currency of the item or the prenote (transaction currency) and the currency of the target account (account currency) are now identical. The system can post the amount in the source currency on the ordering account, and the amount calculated in the target currency on the target account.

Example

This graphic is explained in the accompanying text.

A customer wants to transfer EUR 100 from his/her checking account (A), which is managed in Euros, to a savings account (B), which is managed in US Dollars. The system processes the payment order between the two accounts, managed in different currencies. The transaction currency is EUR, the account currency of the target account is USD.

More Information