The translation type is a combination of different parameters that establish how the exchange rate for the translation is executed. A translation type can be determined independently from source and target currencies.

The parameters that determine the exchange rate are the source and target currencies, exchange rate type and the time reference for the translation.

For the definition of a translation type, you have to define the exchange rate type, the time reference and the use of the inverse exchange rate – the entry of the target currency is optional.

• Exchange rate type: The exchange rate type distinguishes exchange rates that are valid in the same time frame next to each other, for example, the bid rate, ask rate or middle rate. The exchange rate types are stored and can be maintained in a central table (TCURV).

• Inverse exchange rate: You can choose whether or not the inverse exchange rate should be used for the translation type. If you select the translation with the inverse exchange rate, then the reverse currency relation will be used in the relevant translation from one currency to the another. Translation using the inverse exchange rate is useful, for example, when the values have already been translated and the original values need to be restored.

• Source currency: The source currency is the currency that is to be translated. The source currency is determined from the data record or a specified InfoObject (dynamically). When translating currency in Business Explorer the source currency is determined from the data record.
• Target currency: The target currency can either be fixed in the translation type or not selected until the time of translation.

• Time reference: The time reference for the currency translation can be either fixed or variable.

• If the time reference is fixed, then the point in time for the exchange rate determination is independent of the data. The fixed point in time can either be a fixed key date that is stored in the translation type, or be determined using the system date when executing the currency translation.
• If the time reference is variable, then the point in time for the exchange rate determination comes from the value for a time characteristic. The variable time reference can, for example, be determined using the end or the start of a fiscal year or a calendar year, a period and a month – or even to the exact day. It can also be determined using a customer-specific InfoObject (for example, trading day).