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 Currency Translation

Use

The system uses this function to calculate an amount to be posted for a payment item, info item, or a prenote, if this amount is in a different currency. This calculation is based on the exchange rate in indirect quotation. It uses the method Translate Amounts to Another Currency for the TRANSLATE_AMOUNT BAdI Currency Exchange.

Example:

The system determines the following data for the exchange rate category Middle Rate:

  • The amount in the source currency USD 128.31

  • The target currency EUR

  • The date 11/20/2006 (in the UTC time zone)

  • The exchange rate in indirect quotation 1.2831

  • The amount in the target currency EUR 100.00

Integration

This function is part of the currency exchange process.

The Currency Translation function is followed by the Determination of Exchange Rate Categories and Determination of Exchange Rates.

If you require, the system can automatically determine the forex position accounts and execute forex position postings after the currency translation.

Prerequisites

  • You have processed all the Customizing activities listed in the process in Customizing for Account Management (FS-AM).

  • In Customizing for Account Management (FS-AM) under Basic Settings in the Customizing activity Activate Special Components, you have activated the Currency Translation (CTL) entry, or you are using a comparable function in another system.

For more information, see the documentation for the respective Customizing activity.

Activities

For a specified amount in source currency and an exchange rate, the system calculates the amount in the target currency. The system transfers the amount in the source currency, the source and target currency, the exchange rate in indirect quotation, the exchange rate category, the time zone and validity time.