Defining Currencies 

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.

In Financial Accounting, you need to define a company code currency for each company code. You can also define 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 Financials ® Financial Accounting ® Accounts Payable or Accounts Receivable ® Posting ® Posting Documents 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 AC Financials ® Financial Accounting ® Accounts Payable or Accounts Receivable ® Posting ® Posting Documents 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.

You would then no longer need to maintain translation factors and exchange rates between the currencies, but only in relation to the basic currency.

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

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.

If you have established a basic currency for the exchange rate type, you only need to specify the translation ratios in relation to the basic currency.

For more information, see the SAP Library, under Financials ® 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.

If you have established a basic currency for the exchange rate type, you only need to specify the translation ratios in relation to the basic currency.

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

See also: The SAP Library under Financials ® Financial Accounting ® Accounts Payable or Accounts Receivable ® FI General Topics ® Foreign Currencies ®

Parallel Currencies

Foreign Currencies: Overview