Multi Currency Accounting

Technical Data
Technical Name of Business Function	BF_FIN_GL_MCA
Type of Business Function	Enterprise Business Function
Available From	SAP enhancement package 6 for SAP ERP 6.0
Technical Usage	Central Applications
Application Component	General Ledger Accounting (new) and General Ledger Accounting (classic)
Required Business Function	Not relevant

You use this business function to optimize management of foreign currencies in your system.

You can use Multi Currency Accounting (MCA) to manage all accounts in their original currency. You can make valuations in central foreign currency (FX) position accounts rather than in individual balance sheet accounts. The FX positions document the currency risk and show currency fluctuations separately from operational profits and losses.

You can use the following functions:

You can transform FX profits and losses into functional currency amounts, which are documented in the corresponding FX positions.
You can use one or more FX position(s) to control currency exposure in the different company codes.
You can valuate FX positions for all non-functional currencies. The system creates the MCA balance sheet based on the balances in the original currency.

Prerequisites

You have installed the following components as of the version mentioned:

Type of Component

Component

Required for the Following Features Only

Software Component

SAP_APPL 606

EA-APPL 604

BI Content

SAP NetWeaver 7.0 BI Content Add-On 6 SP03

Type of Component	Component	Required for the Following Features Only
Software Component	SAP_APPL 606 EA-APPL 604
BI Content	SAP NetWeaver 7.0 BI Content Add-On 6 SP03

You have implemented and configured Multi Currency Accounting (MCA).

You have activated the Multi Currency Accounting business function (BF_FIN_GL_MCA).

Features

MCA Run Administration

MCA run administration enables the centralized administration of MCA processes.

Document Entry

You can use the MCA Journal to enter MCA documents. You can map currency swaps in the system and correct FX positions. You can park the documents and process them as ledger-specific postings or ledger group-specific postings in the new general ledger. You can also execute single reversals or mass reversals.

Periodic Tasks

The following periodic tasks are available:

Profit and Loss Processes
You can lock, close, and transform Profit and Loss accounts, both document-based and balance-based.
Valuation
You can make valuations of the position accounts and balance sheet accounts and execute a restatement.
Adjustment of Implicit FX Transactions
You can adjust the FI postings that represent implicit currency swaps by making MCA-specific postings to FX positions.
Balance Carryforward
At the end of the fiscal year, you can carry forward the account balances of FX positions and initialize the FX positions. All periodic tasks offer the option of aggregating the posting results, which means you can display aggregated FX positions.

This enables you to measure currency exposures separately from operational profits and losses.

Reports

MCA Balance Sheet
In the specific MCA Balance Sheet, the balances in the original currency form the basis for translation into the desired display currency.
MCA G/L Account Balances
In the specific MCA G/L acount balances report, the balances in the original currency balances are the basis for translation into the desired display currency.
MCA Validation Check
You use the MCA validation check to check whether the exchange rates are plausible, the postings are complete, and that close and transformation of profit and loss accounts was successful. You can also run a report to check whether all relevant Customizing settings are correct.

Exchange Rates

You can define the document types for which you want to use market data exchange rates rather than classical currency translation. When entering FI documents, market data exchange rates enable you to use exchange rates with a total of 28 places, of which a maximum of 14 can be decimal places.

Tools

You can define number ranges, define packages for parallel processing, and load external MCA-relevant data into the system.

More Information

You can find more information about the new function in two different positions in the SAP Library:

Financial Accounting (New)

For more information about each function, see SAP Library for SAP ERP under SAP ERP Central Component Accounting Financial Accounting General Ledger Accounting (FI-GL) (New) Periodic Processing Closing Operations Multi Currency Accounting .

Financial Accounting (Classic)

For more information about each function, see SAP Library for SAP ERP under SAP ERP Central Component Accounting Financial Accounting General Ledger Accounting (FI-GL) Closing and Reporting (FI) Preparing the Financial Statements Multi Currency Accounting .