Customizing for a Local Currency Change

Purpose

You use this process to define your Customizing settings for local currency changes .

Process Flow

We recommend that you make the settings in the order shown below.

If you have already carried forward the balances or posted new data for the new fiscal year before performing the local currency change (despite our recommendation), see SAP Note 722764.

1. Entry of the New Local Currency

As soon as you know that a consolidation unit intends to change its local currency, perform the following steps:

  1. In the parameters of the Consolidation Workbench, temporarily change the fiscal year to the year, at the beginning of which the local currency is going to change.

  2. In the Customizing settings for the consolidation unit, specify the new local currency and save your entries (in the process view of the Workbench at Start of the navigation path Master Data Next navigation step Consolidation Units End of the navigation path ).

  3. In the parameters of the Workbench, change the fiscal year back to what it was before the temporary change (in step 1).

2. Definition of a Currency Translation Method with Rounding Method

Create a currency translation method to be used exclusively for the local currency change – even if you are still in the year prior to the change. This method merely needs to contain a reference translation with the following settings:

  • Source key figure: period value in local currency

  • Exchange rate determination: current exchange rate

  • Rounding method: If possible, assign a rounding method. At a minimum, this method should ensure that the total assets are equal to the total liabilities and equity.

    Note that rounding must be done in local currency.

    Note Note

    Reference translations always use the currency translation key “cumulative”.

    End of the note.
3. Assignment of the Currency Translation Method to the Balance Carryforward Task

Assign the currency translation method to the balance carryforward task. (You should make this assignment no later than the first period of the new fiscal year; but you can make it earlier than that, as well. You do not need to reverse the assignment later on.)

Result

When you perform the balance carryforward task, the system translates all of the values to be carried forward into the local currency.

The task log includes information about the local currency change (see the section Local Currency Change for a Consolidation Unit ).