Purpose

In the SAP system you can post in different currencies.

Prerequisites

You define the currencies allowed in the system and the exchange rates in Customizing under  General Settings Currencies .

You must define a company code currency for each company code in FI. In addition, you can agree on one or two parallel currencies for each company code. These settings also affect Controlling.

You must define a controlling area currency for each controlling area. You make these settings in Customizing for Controlling under  General Controlling Organization Maintain Controlling Area . The system can derive the controlling area currency from the company code currency or from the currencies of other organizational units. Or you can specify the controlling area currency yourself.

Process Flow

The system requires these definitions to check whether an entered currency is allowed and to translate the currencies during posting.

In Customizing, choose  General Settings Currencies Check Currency Codes .

For more information, see the SAP Library , under  FI - Financial Accounting Accounts Payable or  Accounts Receivable Posting Posting a Document in a Foreign Currency Define the number of decimal places for each currency, if you do not want the currency displayed in the standard format.

In Customizing, choose  General Settings Currencies Setting Decimal Places for Currencies .

For more information, see the SAP Library , under  FI - Financial Accounting Accounts Payable or  Accounts Receivable Posting Posting a Document in a Foreign Currency

Exchange rate types enable you to record different exchange rates valid on the same date for different purposes. The system uses exchange rate type M (= average exchange rate) for postings. You can define other exchange rate types for different planning scenarios using different exchange rates, for example.

To define exchange rate types for currency translation, see Customizing, under  General Settings Currencies Check Exchange Rate Types .

For more information, see the SAP Library , under  FI - Financial Accounting Accounts Payable or  Accounts Receivable FI General Topics Organizational Units and Basic Settings -> Currencies Exchange Rates Exchange Rate Type

In Customizing, choose  General Settings Currencies Defining Translation Ratios for Currency Translation .

The translation ratios (such as 1:1 or 1000:1) form the basis of the exchange rates and simplify their display if there is a large difference in the currency units.

For more information, see the SAP Library , under  FI - Financial Accounting Accounts Payable or  Accounts Receivable FI General Topics Foreign Currencies Exchange Rates Exchange Rates Definition of Exchange Rates

In Customizing, choose  General Settings Currencies Enter Exchange Rates .

Exchange rates are period-dependent and valid from the date entered. You can maintain the exchange rates at regular intervals according to your own requirements.

For more information, see the SAP Library , under  FI - Financial Accounting Accounts Payable or  Accounts Receivable FI General Topics Foreign Currencies Exchange Rates Definition of Exchange Rates

See also: