Currency Translation (SAP ƒ‰ƒCƒuƒ‰ƒŠ

Currency Translation

Use

With currency translation in the Special Purpose Ledger, you can translate amounts that were posted in local and global ledgers.

Program RGUUMR00 is available for the currency translation and contains the following functions:

The translation is made from the local currency to the group currency. By making the necessary settings in Customizing, you can, however, translate the transaction currency to the group currency.

You can group accounts into item groups that you translate using various translation methods.

The following accounts can, for example, be grouped in an item group and translated using a specific translation method:

Item group	Translation method
Asset accounts	Translation using historical exchange rates
Balance sheet accounts	Translation for spot rate exchange
P&L accounts	Translation for each period

Integration

For ledger 0 (general ledger), you run a currency translation as part of the foreign currency valuation in the General Ledger application component.

To do so, from the SAP Easy Access menu choose Accounting ® Financial Accounting ® General Ledger ® Periodic processing ® Closing ® Valuate ® Foreign currency valuation.

Different than the foreign currency valuation in General Ledger Accounting, the translation in the Special Purpose Ledger is made at the totals record level during currency translation, and the system does not create any documents.

Prerequisites

In order to run the currency translation, you have to make various settings in Customizing. You can find the settings in Financial Accounting Customizing under Special Purpose Ledger ® Periodic Processing ® Currency Translation.

You have to have defined the translation exchange rates. For more information, see Translation Exchange Rates.

You have to define a translation version for each ledger for which you want to run a currency translation. To do so, choose Define Versions.

You have to specify a translation method. To do so, choose Define Translation Method.

You have to define for version and company code or company the translation method you want to use. To do so, for company codes choose Assign Local Translation Methods and for companies Assign Global Translation Methods.

If you want to complete a currency translation using historical figures, choose Maintain Historical Currency Translation.

You have to have defined your exchange rate types or exchange rate indicators. To do so, choose Set up exchange rate types.

Features

The currency translation takes place in four steps:

Reference currency translation

All accounts are translated using a reference exchange rate indicator (such as spot exchange rate). You enter the reference exchange rate indicator in the selection screen.

In the Special Purpose Ledger, you normally enter the reference exchange rate indicator *. The exchange rate difference is determined by comparing the group currency values that are already contained on the database.

Translation of the account groups

The accounts that are combined in item groups are translated using the translation method defined in Customizing. The amounts translated into the group currency are updated in the group currency fields.

Calculating the translation differences

The difference is calculated from the results of the two methods. The translation differences are posted directly to the accounts set up for exchange rate differences.

You can also specify whether the rounding difference are to be posted to and identified by specific accounts.

If you use exchange rate indicator *, you should first make a test run and check its results. When defining the translation method for the update run, you should specify that the system posts documents.

This is necessary, since the system uses existing group currency values for the currency translation with reference exchange rate indicator *. The existing group currency values are replaced with every translation run. You thus have to check whether the group currency values that you want to use as a reference have already been replaced by a translation run.

You execute a currency translation for item group GWUL_DEMO that only contains account 100000 cash.

The account has a balance of 10,000 USD. From a previous reference translation, a reference value of 19,000 DEM exists in the group currency. The current USD/DEM exchange rate is 2.00.

The currency translation makes the calculation with reference exchange rate indicator *, resulting in a value of 20,000 and a translation difference of 1,000. The translation difference is posted to the account specified for differences (399999).

Activities

To carry out currency translation, from the SAP Easy Access menu choose Accounting ® Financial Accounting ® Special Purpose Ledger ® Periodic processing ® Currency translation ® Local for local ledgers or Global for global ledgers.

In the selection screen, you can also enter the following:

You can specify the level of detail of the output list. To do so, specify a list type.
You can specify whether you want to first make a test run. In this can, the system makes no changes to the database.
You can allocate the translation differences to the affiliated companies. To do so, set the affiliated companies indicator.
You can also allocate the differences by transaction currency. To do so, set the Transaction currencies indicator.