Currency Translation Type  

Definition

A translation type is a combination of different parameters that establish how the exchange rate for the translation is determined.

Structure

The parameters that determine the exchange rate are the source and target currencies, exchange rate type and the time reference for the translation.

To define a translation type you have to define the exchange rate type, the time reference, and how and when the inverse exchange rate is used. Entering the target currency is optional.

●      Exchange rate type: The exchange rate type distinguishes between exchange rates that are valid in the same time frame, for example, the bid rate, ask rate or middle rate. The exchange rate types are stored in a central table (TCURV) and can by maintained in Customizing using BI Customizing Implementation Guide → General Settings → Currencies  → Check Currency Types. Alternatively you can specify any variable that exists for InfoObject 0RTYPE.

●      Inverse exchange rate: You can choose whether the inverse exchange rate is to be used for the translation type. If you choose translation with the inverse exchange rate, then the reverse exchange rate is used in the relevant translation from one currency to another. Translation using the inverse exchange rate is useful, for example, when values from the original documents have been translated before being saved in the data targets and you want to restore the original values.

You have maintained the following exchange rates:

EUR  →  USD 0.940          

USD  →  EUR 1.070

When translating from USD to EUR using the inverse exchange rate, a rate of 1/0.940 = 1.064 is used and not a rate of 1.070.

●      Source currency: The source currency is the currency that is to be translated. You have the following options:

○       The source currency is determined dynamically using the data record. This is always the case when you perform currency translation in the Business Explorer.

○       The source currency is determined dynamically using a specified InfoObject (characteristic). During the data load process, the source currency can be determined either using the data record or a specified characteristic bearing master data (see example: Defining Target Currencies Using InfoObjects. Determining the source currency using an InfoObject is performed in the same way).

○       You can use a fixed source currency in planning functions. Data records with the same currency key as the source currency are translated.

○       You can specify any variable that exists for InfoObject 0CURRENCY. You can also use these options in planning functions.

●      Target currency:

To determine the target currency, you have the following options:

...

○       You can establish that the target currency be determined upon translation. In the Query Designer under the properties for the relevant key figure, you specify either a fixed target currency or a variable to determine the target currency.

○       You can enter a fixed target currency (for example, ‘EUR’).

○       You can specify any variable that exists for InfoObject 0CURRENCY.

○       In the currency translation type, you can specify an InfoObject which is used to determine the target currency upon translation. In characteristic maintenance on the Tab Page: Business Explorer, you have to determine a currency attribute. For more information, see the example under Defining Target Currencies Using InfoObjects. If the Only Use in Transformation indicator is set, you can also enter InfoObjects that do not have a currency attribute set in InfoObject maintenance. InfoObjects that are entered here have to be available in the source and contain a currency as an attribute.

○       You can specify an InfoSet: This is only necessary if you are determining the target currency using an InfoObject that exists in the InfoSet more than once. You enter the field alias so that the InfoObject can be specified uniquely.

●      Time reference: The time reference for the currency translation can be either fixed or variable.

If the time reference is fixed, the time at which the exchange rate is determined is independent of the data. You have the following options:

○       You can establish that the time reference be determined upon translation.

○       You can select the current date.

○       You can specify a fixed date as the key date.

○       You can specify any variable that exists for InfoObject 0DATE.

○       You can establish that the query key date be used. This is determined in the query settings.

If the time reference is variable, the time at which the exchange rate is determined is decided by a time characteristic value.

○       A variable time reference can, for example, be determined using the end or start of a fiscal year or calendar year, a period and a month – or even to the exact day. The following standard time characteristics are available: 0FISCYEAR, 0FISCPER, 0CALYEAR, 0CALQUARTER, 0CALMONTH, 0CALWEEK and 0CALDAY.

○       The time reference can also be determined using a customer-specific InfoObject of type date (for example, trading day). Note that this InfoObject has to have the same properties as the standard InfoObject selected in the variable time reference or must reference it.

○       You can specify an InfoSet: This is only necessary if you are determining the target currency using an InfoObject that exists in the InfoSet more than once. You enter the field alias so that the InfoObject can be specified uniquely.

In the Business Explorer, you can only set time variable currency translations in query definition, and not for an executed query. See also Setting Variable Target Currency in the Query Designer.

○       In the Time Adjustment field of type INT4, you can specify whole numbers with a +/- sign.

○       In the Time Adjustment from Variable field, you can specify formula variables (1FORMULA). As these values of the variables may have to be whole numbers, they are rounded to whole numbers (integers) where necessary.

The time adjustment (regardless of whether it is fixed or variable) is always related to the InfoObject specified under Variable Time Reference.

Example of a time adjustment of -3:

The variable time reference is To the exact day and the InfoObject under Variable Time Reference is 0CALDAY. Instead of 07.11.2006, after the time adjustment, 04.11.2006 is used for the translation.

The variable time reference is End of Week and the InfoObject under Variable Time Reference is 0CALWEEK. Instead of 52.2004, the week 49.2004 is calculated and the end date is calculated from this.

See also:

Creating Currency Translation Types

Currency Translation in the Update