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 Exchange Rate Determination

Use

The system uses this function to determine the exchange rate using indirect quotation for a payment item amount, and info item amount, or a prenote amount. The system uses the Currency Exchange BAdI, and the Determine Exchange Rates method (DETERMINE_EXCHANGE_RATE).

Example:

The system determines an exchange rate (in indirect quotation) of 1.2831 for exchange rate category Middle Rate, source currency USD, target currency EUR, and the date 11/20/2006 (time zone UTC).

Integration

This function is part of the currency exchange process that enables postings between accounts in different currencies.

The Determination of Exchange Rates function is a prerequisite for the Currency Translation function.

Prerequisites

Customizing

  • 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.

  • In Customizing, under SAP NetWeaver, you have processed the Customizing activities under Start of the navigation path General Settings Next navigation step Currencies End of the navigation path, or you are using a comparable function to define exchange rates and exchange rate types.

  • In Customizing for Account Management (FS-AM), you have processed the Customizing activities under Start of the navigation path Item Management Next navigation step Basic Functions Next navigation step Currency Exchange End of the navigation path.

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

Activities

The system determines the exchange rate (indirect quotation) by using the exchange rate category valid at a certain time as well as the target and source currency. It then transfers the following import parameters that are valid at this time:

  • The exchange rate

  • The amount to be posted, in source currency.

  • The amount to be posted, in target currency.

Additional import parameters:

  • Valid-At Time for Exchange Rate

  • Time Zone

  • Valid-On date for exchange rate

The currency exchange function can use this information to translate the amount to the target currency.