Currency Translation Type 

Definition

A translation type is a combination of different parameters that establish how the exchange rate for the translation is determined.

Structure

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

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

·        Exchange rate type: The exchange rate type distinguishes between exchange rates that are valid next to each other in the same time frame , for example, the bid rate, ask rate or middle rate. The exchange rate types are defined in a central table (TCURV) and can by maintained in Customizing with BW Customizing Implementation Guide ® General Settings ® Currencies  ® Check Currency Types.

·        Inverse exchange rate: You can choose whether or not the inverse exchange rate should be used for the translation type. If you select translation with the inverse exchange rate, then the reverse currency relation will be used in the relevant translation from one currency to another. Translation using the inverse exchange rate is useful, for example, when the values from the original documents were already translated before being saved in the data targets and the original values need to be redefined.

You have maintained the following exchange rates:

EUR  ®  USD 0.940          

USD  ®  EUR 1.070

When translating from USD to EUR using the inverse exchange rate, a rate of 1/0.940 = 1.064 and not a rate of 1.070 is used.

·        Source currency: The source currency is the currency that is to be translated. The source currency is determined dynamically from the data record or from a specified InfoObject (characteristic). When translating currency in Business Explorer, the source currency is always determined from the data record.

During the data loading process, the source currency can be determined, both from the data record and from a specified characteristic bearing master data (see example: Stipulating the Target Currency from an InfoObject – stipulation of the source currency from an InfoObject takes place analogously).

·        Target currency:

To determine the target currency, you have three options:

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                            a.      You can enter a fixed target currency into the currency translation type (for example, ‘EUR’).

                            b.      In the currency translation type, you can specify an InfoObject from which the target currency can be determined during translation. For this you have to determine a currency attribute in the characteristic maintenance on the Business Explorer tab page. For more information, see the example on Stipulating the Target Currency from an InfoObject

                            c.      Alternatively, you can establish that the target currency be determined with the translation. In this way, either a fixed target currency or a variable for the determination of a target currency can be specified under the properties for the corresponding key figure under the properties in Query Designer.

·        Time base: The time base 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 defined in the translation type, the query key date (the date defined in the query settings) or can be determined using the system date when executing the currency translation.

¡        If the time base is variable, then the point in time for the exchange rate determination comes from the value for a time characteristic. The variable time base 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. The following standard time characteristics are available: 0FISCYEAR, 0FISCPER, 0CALYEAR, 0CALQUARTER, 0CALMONTH, 0CALWEEK and 0CALDAY. The time base can also be determined using a customer-specific InfoObject (for example, trading day).

You can only set time variable currency translations in the Business Explorer in the query definition, and not in the executed query. See also Setting Up Variable Currency Translation

 

See Also:

Creating Currency Translation Types

Editing Currency Translation Types

Currency Translation in the Update