Cost and Revenue Planning in Multiple Currencies (SAP Library

Cost and Revenue Planning in Multiple Currencies

Use

Multinational companies with subsidiaries in various countries using different currencies might find it necessary to perform cost and revenue planning of appropriation requests in multiple currencies.

Features

In individual planning for an appropriation request, you can enter planned cost and revenue values of an appropriation request variant in the controlling area currency or in the object currency. In either case, the system stores the planned cost and revenue values in both the controlling area currency and the object currency, if the two are different. When doing so, the system translates the total plan values resulting from changes. (During overall planning of orders and projects, the system translates each change to plan values separately).

Caution

The system determines the exchange rate from the exchange rate type and the value date. For annual plan values, the system finds these values in the year-dependent settings for the plan version of the variant. If the variant is not yet assigned to a plan version, then the system uses the exchange rate type and value date from the year-dependent settings for plan version 0. For overall values that are not distributed to years, the system uses the exchange rate type and value date from the planning profile for cost planning. The complete overall value is translated using the following logic:

First the system calculates the Remainder, that is, the difference between the overall value and the total of the annual values. Only this remainder is translated, using the exchange rate type and value date from the planning profile for cost planning.
The translated overall value, then, is calculated by adding the translated remainder and the sum of the of the translated annual values.

If the overall value represents the sum of the annual values, this logic ensures that this relationship still exists after the currency translation.

In your planning profile for cost planning, you specify per appropriation request type, which planning currency you allow in cost and revenue planning:

Controlling area currency

The controlling area currency is the currency in which the controlling area is managed. If you plan in the controlling area currency, you can enter plan values only in the controlling area currency.

Object currency

The object currency is the currency in which the appropriation request is managed. The object currency is entered in the master data of the appropriation request. If you plan in the object currency, you can enter plan values only in the currency of the appropriation request.

Transaction currency (your choice of currency)

You can plan in the controlling area currency and object currency and – without having to save in between – switch back and forth between these two planning currencies. The system offers the object currency or the controlling area currency as the default planning currency, depending on whether or not the Default Object Currency indicator is set in the planning profile for cost planning. Unlike overall planning in orders and projects, planning here always shows the values entered in both currencies, and allows entries in both currencies.

Caution

Regardless of which currency you use for planning, the system always translates the entered plan values into the controlling area currency and object currency, and updates the values in both currencies. For this reason, individual planning always shows the planned cost and revenue values in both the controlling area currency and the object currency.

The consistency checks triggered by the Check function during planning are based on either

Values in the controlling area currency, if this is the planning currency according to the planning profile for cost planning, or if the planning profile allows for use of a transaction currency, and the Default Object Currency indicator is not set
Values in the object currency, if this is the planning currency according to the planning profile for cost planning, or if the planning profile allows for use of a transaction currency, and the Default Object Currency indicator is set

If the variant is assigned to a different version, then the system automatically recalculates the values for cost and revenue planning. The system hereby translates the values into the object currency from the controlling area currency, or vice versa. The currency used as the source currency is determined as follows:

Controlling area currency: If this is the planning currency according to the planning profile for cost planning, or if the planning profile allows for use of a transaction currency, and the Default Object Currency indicator is not set
Object currency: If this is the planning currency according to the planning profile for cost planning, or if the planning profile allows for use of a transaction currency, and the Default Object Currency indicator is set

Often you initially have to enter a preliminary exchange rate for the translation between the controlling area currency and object currency, and then update this exchange rate at a later date. In this case, you have to have the system recalculate the cost and revenue planning values that have already been entered, using the updated exchange rate.
You can have the system translate the values into the object currency from the controlling area currency, or vice versa.
The program for translating currency values at a later date is found in the Easy Access Menu. Choose Accounting ® Investment Management ® Appropriation Requests ® Environment ® Tools ® Currency Recalculation of Plan for Appropriation Requests.