When you transfer external data into an aspect, currency translations allow you to determine how currency-related key figures are translated for display in EC.

The specific currency translation options you have depend on the global Customizing settings that have been made.

The data to be transferred has a currency reference, for example prices or salaries.

You choose the appropriate exchange rate type to be used from numerous possible exchange rate types. These include for example buying rate, asking rate, official average rate etc. You define the available exchange rate types in Customizing.

You make settings concerning the target currency. There are two strategies available for this.

• Fixed: You specify a currency into which the currency data is translated during transfer. This is an optional setting and in some cases it may be better not to specify a currency. For example, in drilldown reporting you can only use certain translation types if no target currency has been specified for data transfer.
• Variable: Besides setting a fixed target currency, you can also designate a variable target currency. You must also create the reference to a characteristic here, on which the choice of currency depends. You do this by specifying a table and a field in the table. The value of the field will determine the target currency, foe example the field COUNTRY1 in the country table T005.

You can determine that an exchange rate inversion is to be carried out. This can be necessary if the transferred data was already translated into another currency, and if the data is to be displayed in drilldown reporting in the original currency.

You can define the time frame for currency translation. The two available currency translation strategies differ as follows:

• Fixed: The currency translation is carried out using the exchange rate from a specific date. This can be either the rate from the current date or a spot exchange rate.
• Variable: The currency translation is carried out using an exchange rate that is derived from the posting date of the transferred data records, for example period start, year end.