Currencies (SAP Library - Investment Management (IM))

Currencies

Use

The R/3 Financial Accounting (FI) component offers you the option of managing up to three different currencies in parallel in one company code. You can define three local currencies for each company code in FI Customizing.

The Asset Accounting (FI-AA) component supports the FI currency functions with its depreciation areas, in which you define the given local currency. In addition, each asset under construction can manage any number of additional depreciation areas, in which other currencies can be managed.

Currencies in Management Accounting

The Controlling (CO) component, on the other hand, offers only two currencies:

Controlling area currency

Object currency

Investment measures are represented in the Investment Management (IM) component using the CO objects: order or WBS element. Therefore, you can post an acquisition to an investment measure in at most two currencies (controlling area currency and object currency). During the periodic settlement to an asset under construction, there are only two original currencies available. The system translates into any other currencies, that are used in Asset Accounting or Financial Accounting, at the time of the settlement.

Features

There are two different situations possible for the currency translation of values related to the settlement of an investment measure:

When line item settlement is used for the measure (refer to Settlement Rules), the system uses the historical exchange rate from the posting date of the original debit for the translation for each line item.

When summary settlement is used for the measure, the system uses the exchange rate valid on the value date of the settlement for the translation of all values.

In both cases, the currency translation may cause the values to be slightly inexact. For summary settlement, the exchange rate on the value date of the settlement very often does not agree with the exchange rate at the time the debit was posted. For line item settlement, this problem does not arise. However, you cannot exclude the possibility that manual changes were made to the exchange rate within the posting transaction for a debit. These manual changes to the exchange rate cannot be taken into account during the currency translation.

It is currently not possible to manage down payments on investment measures intended for summary settlement, if the accompanying asset under construction manages depreciation areas in a foreign currency, and this currency

Is not the controlling area currency, and is not managed as a parallel currency in the company code
Is still the controlling area currency

You then have two choices. Either settle the investment measure using line item settlement; or manage the depreciation area in the foreign currency only on the master records for the completed assets. This limitation is necessary, since the system cannot guarantee that down payments and down payment clearing for such currencies are translated using the same exchange rate during summary settlement.

Possible Combinations of Currencies

The currency functions in the FI and CO components limit the handling of currencies for investment measures, under the following conditions:

Company code currency and controlling area currency are identical, and there are no parallel currencies in the FI component.

In this case, you can use the object currency of the order or WBS element. During the periodic settlement to the asset under construction, the system settles the amounts in controlling area currency to the depreciation areas in company code currency.

Company code currency and controlling area currency are identical, and there is another parallel currency in the FI component.

In this case, the object currency has to be the same as the additional, parallel company code currency. During the periodic settlement, the system settles the amounts in controlling area currency to the depreciation areas in the company code currency. Amounts in the object currency are settled to the depreciation areas in the parallel FI currency.

For a third parallel FI currency, the system can only provide values by currency translation at the time of the settlement, which results in the inexactness due to exchange rates that was described above.

Company code currency and controlling are currency are not the same.

In this case, the object currency has to be the same as the company code currency. During the periodic settlement, the system settles amounts in the object currency to the depreciation areas in company code currency. It provides values to the controlling area currency depreciation areas in the controlling area currency.

If there is another parallel FI company code currency, this currency has to be the same as the controlling area currency. For a third parallel FI currency, the system can only provide values by currency translation at the time of the settlement, which results in the inexactness due to exchange rates that was described above.