Currency Translation
Use
You use this function to translate key figure values that represent sums of money into another currency. You require this function if you want to plan key figures, for example sales or revenue, for different companies of your enterprise that balance in different local currency. Translation into a unified currency (for example the group currency) then means that the plan figures of the different companies can be compared with each other.
You can find more information on currency translation in SAP BW under Currency Translation.
Prerequisites
In order to use this function, the necessary currencies, exchange rates, and currency translation keys must be maintained in your system.
Features
In the definition of a function for currency translation you define, in the list of fields for conditions, those characteristics according to which you want to break down the different currency translations that the function should carry out. You would normally select the characteristic country for this.
The function for currency translation always translates from the currency in which a key figure is currently conducted into the target currency that is determined by you. The function automatically determines all financial key figures from the planning level and makes them available for currency translation in the parameter groups. For the characteristic value combinations that result from the selected condition fields, you enter the type of currency translation that you have chosen. Here you have the following possibilities:
·
Key figure
You enter both the initial key figure (from key figure) that you want
to translate, and the target key figure (to key figure), in which the
translated value should be stored.
The value of the initial key figure is not changed. However, if you specify the same key figure for both fields, the original values of the key figure will be overwritten by those of the target currency.
If, within one parameter group, you translate different initial key figures into the same target key figure, then the values in the target key figure are added up.
The currency of the initial key figure can always be determined: The currency is always determined automatically and does not have to be entered. Either the key figure has a fixed currency or the currency comes from a characteristic. If the target key figure does not have a fixed currency you can determine this (see exchange type, target currency, and target currency characteristic).
·
Exchange rate type
Here you enter which exchange rate (in relation to the date of translation)
should be used for the currency translation, for example, average rate,
current exchange rate, historical exchange rate.
· Target currency Here you determine the currency in which the key figure values are to be translated. Under the currencies you select the one which is available in your system directly.
·
Characteristic target currency
Here you can select a characteristic that is contained in the currency-bearing
planning level, through which the target currency is determined. The data type
of the characteristic is not user-defined but has to be able to incorporate a
special currency key (Data type CUKY in the Data Dictionary).
The key figure sales as well as the characteristics country, company and group currency are contained in a planning level. Through a compound characteristic with the characteristic company, the characteristic local currency is also contained. You restrict the group currency to US Dollar and the local currency to German Mark. In a planning package that is restricted to the country Germany, you enter sales figures that are posted in local currency (that is German Mark).
Subsequently you want to translate the sales figures of all companies into the group currency US Dollar. For this you set up a parameter group for the currency translation function and define that the target currency should be determined using the characteristic group currency.
·
Translation date, current date, time
base
Decide on one of the three possible ways to determine the exchange rate date
that the currency translation should be based on:
¡ Translation date: You set a certain date as fixed.
¡ Current date: The translation takes place at the exchange rate that is valid at the time of the translation function.
¡
Time base: You select one of the time bases that are offered
by the system, this should be used in conjunction with one of the time-bearing
characteristics for calculating the exchange rate date that is contained in
the planning level.
Which time base you can set up depends on which time-bearing characteristics
you have included in the planning level:
§ In the case of the characteristic fiscal year/period you can choose between the time bases “start period” and “end period”.
§ In the case of the characteristic pair period and fiscal year you can choose between the time bases “start fiscal year” and “end fiscal year”.
The three ways of determining the exchange rate date are mutually exclusive. If you make entries for more than one field, then the system rejects your entries.
See also:
Currency Translation: Notes on Modeling