Translating Foreign Currency
Use
You can either have the exchange rate for foreign currencies proposed by the system, or you can enter it manually.
Prerequisites
You have defined the exchange rate for the foreign currency to be translated.
Features
To translate foreign currency amounts, the system usually uses the exchange rate you have defined in the system. You can enter exchange rates in the system for specific time periods. The system then determines the appropriate exchange rate for the translation on the posting date. If you want to use a different exchange rate to the one for the posting date, you can enter this manually in the document header.
Note
This is necessary if you are posting an invoice for which the posting period has already been closed. In this case, you post in the current period. In order for the system to be able to determine the appropriate exchange rate, enter the invoice date as the translation date.
Activities
Enter the exchange rate directly (manually) in the document header. The system checks the difference between the exchange rate you entered and the exchange rate calculated by the system. This prevents errors in entries. For each company code, you can define the percentage difference tolerated between the exchange rates.
Recommendation
You can define special tolerances for currencies with large fluctuations in value. These are not company code-specific. If the tolerance is exceeded, the system issues a warning.
You can also determine the exchange rate in each individual line item. To do this, specify the local and foreign currency amount in the line item. The system determines the exchange rate using your specifications. It also checks the difference between the exchange rate calculated and the exchange rate from the document header. The system issues a warning if the tolerance limits for the permitted exchange rate difference is exceeded.
When you post the document, the balance must be zero in both local and foreign currency. Rounding differences that arise on translation are processed automatically. The system adds differences to the first line item that has the corresponding +/- sign.
Accounting clerks can make user-specific settings: They can suppress fields for local or foreign currencies.