A problem occurs if the fixed assets are not translated historically but by means of the spot exchange rate: an arithmetically-consistent development is generated from the closing balance of the previous year to the closing balance of the current period. Here, the closing balance of the previous year is valuated using the spot exchange rate of the previous year, all other values are calculated using the new spot rate of the current period. This causes a difference which equates to the translation difference between the closing balance of the previous year and the opening balance of the current year. This difference can be shown by means of a special transaction type when posting the translation differences and in a specific report.

The following settings must be made:

• Define two transaction types to accommodate translation differences for the opening balance APC (acquisition and production cost; for example 105) and the opening balance of accumulated depreciation (for example 205). As usual, a transaction type group is assigned to the transaction type. The transaction types and transaction type groups in the standard SAP system both share the same ID’s.

• Define two transaction type groups, which will total the transaction type groups for the opening balance and the new transaction type group for the translation difference, for APC (for example 109) and accumulated depreciation (for example 209) respectively, using a formula.

• Define a translation method which supports the following translation concerning fixed assets:

• Translation of the transaction type for the opening balance APC using the spot exchange rate of the previous year.

• Likewise, translation of the transaction type for the opening balance of accumulated depreciation

• Translation of the remaining transaction types concerning fixed assets using the spot exchange rate of the current year.

• Definition of a two-line (APC and accumulated depreciation) standard report with the following column layout:

• Closing balance previous year

• Translation differences

• Opening balance current year

• Acquisitions, retirements, transfers, etc.

• Closing balance

The system settings for generating an asset history sheet that includes translation differences are shown below; these are based on the standard SAP system.