Currency Translation 

Use

You can translate your account balances from local currency into group currency. The translation is performed in accordance with FASB 52 (US GAAP) or IAS. However, you can also perform the currency translation for other currency types.

Integration

In General Ledger Accounting, you can only perform a currency translation as part of the foreign currency valuation.

Prerequisites

·        You have performed a foreign currency valuation and have made all the settings for it in Customizing (see Foreign Currency Valuation).

·        You have defined account determination for the translation in Customizing for Financial Accounting (New). To do this, in the Implementation Guide for Financial Accounting (New), choose General Ledger Accounting (New) ® Periodic Processing ® Valuate ® Foreign Currency Valuation ® Define Account Determination for Currency Translation.

On the basis of the financial statement version, you can define different exchange rate types for each financial statement item and thereby different exchange rates for the valuation.

Features

The account balances are translated from local currency into group currency.

Activities

·        To perform a currency translation, from the SAP Easy Access screen, choose Accounting ® Financial Accounting ® General Ledger/Accounts Receivable/Accounts Payable ® Periodic Processing ® Closing ® Valuate ® Currency Translation of Balances.

·        In the general selection data, enter a valuation area (for translation into group currency, for example, enter the valuation area with your group currency).