Execution of a Currency Translation

Purpose

You implement this process to translate a consistent data set to a target currency and – measured by a reference translation – report translation differences.

In particular, you can use this process to translate individual financial statements of consolidation units into the shared group currency and to represent budget calculations made in different currencies in one shared currency.

Process Flow

A Currency Translation may consist of multiple steps, each of which can contain its own substeps; meaning that the steps can be defined as a hierarchy.

In order to execute a currency translation, you first define its general structure in the method layout; meaning that you define the following:

  • Number of levels of the step hierarchy of this method layout

  • Characteristics that are to be available in fast entry when a method is defined (fast entry is discussed later on)

  • Level of the step hierarchy as of which Selection, Source Key Figures, Currency Translation Key, Exchange Rate Determination, and Currency Translation Difference are visible and/or ready for input when defining a method.

When defining the method, you specify the details of the currency translation. Fast entry features an overview of the currency translation. Fast entry enables you to create steps and to navigate among these steps. You specify the reference translation globally for the entire method. For each step, you specify which currency translation key and which exchange rate type are to be used for the translation, and how the currency translation differences are to be posted. The system executes the steps in the desired sequence. Meaning: The system considers the results of a step in the subsequent step.

The process flow in detail:

A. Customizing
Defining Exchange Rate Indicators, Translation Ratios, Exchange Rates

Define exchange rate indicators, translation ratios, and exchange rates for the currency translation.

Defining a Task

Define a task for the currency translation.

Define Method Layout

Create a new method layout with the type Currency Translation or use an existing one.

If you define a new method layout, proceed as follows:

  1. On the screen for defining the currency translation, define the number of levels the step hierarchy contains.

    In order to define a method later on, also specify the following:

    • Level of the step hierarchy as of which the Selection and the Translation Difference are visible. You change the visibility by dragging the arrows over to the desired row (using drag and drop).

    • Level of the step hierarchy as of which the Source Key Figures, Currency Translation Key, and Exchange Rate Determination are visible and ready for input. You change this by dragging the cross symbols over to the desired row (using drag and drop).

    • Characteristics that are to be available in fast entry when defining a method

    Note Note

    • If you only want a single step for currency translation, there is no need to designate characteristics for fast entry.

    • You can remove characteristics from the table by dragging them to the trash folder (using drag and drop).

    • You can delete a step by dragging it to the trash folder (using drag and drop).

    End of the note.

    Recommendation Recommendation

    We recommend planning fast entry for the characteristic for the accounting object (for example, item) at the highest level of the step hierarchy for Selection and Translation Difference since this will provide you with a good overview of the selections and their differential accounting objects later on.

    End of the recommendation.

  2. Save the method layout definition.

Define Method

  1. Create a method for the method layout.

  2. First, specify (at the highest level) the Reference Translation with Source Key Figure and Exchange Rate Type globally for all steps.

    Note Note

    • You cannot specify the Target Key Figure explicitly. The system automatically specifies the group currency as the target key figure; the currency key for this is the group currency key.

    • The reference translation always uses the currency translation key “cumulative”.

    End of the note.

  3. In fast entry, create a step for each combination of currency translation key and exchange rate type. For example, you create a step for the translation of equity; during selection, you enter the equity items as an interval (for example, items 170000 to 170399).

    If you have also planned fast entry for the differential accounting object, for each step, enter the accounting object to which the translation differences are to be posted (for example, translation differences when translating equity: item 250900).

    For an item, you can specify one or more subassignments; for each subassignment, you can select the Default indicator and/or specify a characteristic value for the subassignment.

    Note Note

    The differential accounting object must reside outside of the associated selection, if you also enter values in the source currency for the accounting object.

    End of the note.

  4. For each step (and therefore for each group of accounting objects to be translated), define the Specific Translation: Determine which currency translation key and which exchange rate type are to be used for the specific translation.

    Note Note

    For the settings for currency translation, where necessary, assign a custom procedure for determining exchange rates and/or a custom translation procedure. Use the following BAdIs:

    • For custom procedures for determining exchange rates: UC_CTR_XRPROC

    • For custom translation procedures: UC_CTR_CTPROC

    For more detailed information, see the relevant system documentation for the BAdI and the documentation for its methods.

    End of the note.

  5. Save your entries.

Assign Method

Assign the currency translation method to the task and the corresponding consolidation units.

B. Execute the Currency Translation

You execute the currency translation by running the task for the currency translation in the consolidation monitor.

Result

A confirmation is displayed after successful execution of the currency translation. The translated data is then available in the InfoCube for transaction data.