Calculation of Foreign Currency Translation Reserve (FCTR)

I am trying to calculate the FCTR in the <Parent Currency> member of the Value Dimension. I want to calculate the difference between the Net Assets and Equity and return it to the FCTR account in the <Parent Currency>.
I have tried a number of combinations, starting with;
If Value="<Parent Currency> Then
I even tried to use Select case.
Any ideas?

First of all you have to forget the V# in your expressions on the context you are working. This is managed by the if statement. Second, what you do here means that you are done with translation and now you are in calculation at the <Parent Currency> level. So, you also forget Sub Translate, this will never work. A third problem I can see is that you should specify base members for C3 and C4 in the left side of your HS.Exp expression (it is not necessary to do the same in HS.Clear though).
Finally I have some doubts on the way you are trying to do this. You have two parent accounts A#BS400000 and A#BS899999, and you try to assign their difference in a descendant account. I'm not sure how this cyclic reference would work. However, it could work if BS500600 was not in any of the hierarchies of the above parents. Then the piece of code below could work.
If HS.Value.IsTransCur() Then
HS.Clear "A#BS500600.C1#[None].C2#C200185.I#[ICP None]"
HS.Exp "A#BS500600.C1#[None].C2#C200185.I#[ICP None].C3#[None].C4#[None] = A#BS400000.C1#AllCustom1.C2#AllCustom2.I#[ICP Top] " & _
" - A#BS899999.C1#AllCustom1.C2#AllCustom2.I#[ICP Top]"
End If
Regards

Similar Messages

CTR (currency translation reserve) account calculating

Hello, colleagues!
We have met another issue:
When RU's currency not the same as reporting currency, equity historical change should be shown on account CTR (currency translation reserve) separately (according to IAS 27). We implemented rule, which perform it, but this rule should be applyed only for RU, which currency not the same as consolidation currency. How rule can distinquesh it? In other words, how FC can understand for what RUs CTR should be calculated through the proccess of consolidation, and who which RUs not?
Thanks!

First of all you have to forget the V# in your expressions on the context you are working. This is managed by the if statement. Second, what you do here means that you are done with translation and now you are in calculation at the <Parent Currency> level. So, you also forget Sub Translate, this will never work. A third problem I can see is that you should specify base members for C3 and C4 in the left side of your HS.Exp expression (it is not necessary to do the same in HS.Clear though).
Finally I have some doubts on the way you are trying to do this. You have two parent accounts A#BS400000 and A#BS899999, and you try to assign their difference in a descendant account. I'm not sure how this cyclic reference would work. However, it could work if BS500600 was not in any of the hierarchies of the above parents. Then the piece of code below could work.
If HS.Value.IsTransCur() Then
HS.Clear "A#BS500600.C1#[None].C2#C200185.I#[ICP None]"
HS.Exp "A#BS500600.C1#[None].C2#C200185.I#[ICP None].C3#[None].C4#[None] = A#BS400000.C1#AllCustom1.C2#AllCustom2.I#[ICP Top] " & _
" - A#BS899999.C1#AllCustom1.C2#AllCustom2.I#[ICP Top]"
End If
Regards

Foreign Currency Translation at Year End - How SAP Works for P&L items?

Hi All,
I wanted to know "How SAP works on Foreign Currency Translation at year end" from Local Currency to Group Currency for P&L Items.
I know how SAP works for Balance sheet items but am really confused with when the translation was done for P&L Items.
Configuration:
We are on ECC 6.0 . Local Currency is CAD and we have 2nd Local Currency as "USD - Group Curr".
We have set up Valuation Method - 4
We have set up Valuation Area - 40
For Account Determination for Currency Translation, GL accounts (Loss, Gain and B/S Adj) were setup for the combination of Chart of Accounts, Val Area and Fin Stmt Ver.
Sales Account Balance
CAD (LC)        USD (2nd LC)
1000                   920
Using tcode "FAGL_FC_TRANS", we translated our P&L items.
Local Currency is CAD and Group Currency is USD.
CAD 1000 and USD 920 are cumulative balances over a period of time.
Since at the end of year CAD became stronger, exchange rate is 1.11 as an example
Sales Account Balance
CAD (LC)        USD (2nd LC)        Translated Value in USD
1000                   920                        900
System passed the following entry in USD:
Debit Balance Sheet Adj A/c 20
Credit Translation Gain / Loss A/c 20
Here are the questions:
1. How does over all translation work? - Should we get any Gain / Loss and have an effect on P&L when all accounts (P&L, B/S) are translated?
2. How can there be a gain entry when USD value has really fallen from 920 to 900 in the current case.
Thanks for your time.
Vijay

Hi,
I had this issue too. The entry was just opposite to what it should be. I just flipped the accounts in table FAGL_T030TR.
Example: 410000 is sales account which normally should have a credit balance. Here are some entries that were posted to sales in 03/2009 and I am running FAGL_FC_TRANS at the end of the month.
March 1, 2009 Cr. Sales CAD 1000- USD 900-
March 2, 2009 Cr. Sales CAD 500- USD 480-
During FC translation transaction, system takes the balance in the account for the period (if you execute it with 'Val. period balance only' checkbox checked) and not the cumulative balance. SAP recommends translating period balance only (and not cumulative balance) for P&L accounts. It sees a balance in LC (this again depends on the config. you have in OB22 - whether the indicator is 1 (TC as source currency) or 2 (LC as source currency for translation)) which is 1500, converts that at month end rate. After conversion, lets say the balance is 1400-.
In this case, we expect a credit entry on sales account
March 31, 2009 Cr. Sales CAD 0 USD 20-
But system was just posting the opposite. I then flipped the accounts in FC translation configuration. I know it is misleading. In that configuration, system says balance sheet adjustment account, but what you should actually give there is your gain/loss account. Our gain/loss a/c. falls in the same GL account range as the main account. For example, for 410000, it is 410999 and for 510000, it is 510999. We report accounts 410000 to 410999 in the same node in the FSV.
Pl. feel free to ask further questions about this. Pl. test in your system and correct me if my above reply is wrong.
Cheers!

Foreign currency translation posting into Non leading ledger

Hi,
Is it possible to post Foreign currency translation into Non Leading Ledger? I have used the Tcode FAGL_FC_TRANS to post Foreign currency translation, but when i look into transaction data in FAGLFLEXA table, i can only see the posting into 0L (leading ledger). If it is possible to post into non leading leadger, could any one guide me how to do that.
Thanks,
Sabera

Hi,
Please find the below link it will help full for you,.........
define exchange rate types according to ledgers
Naresh

Difference between Foreign Currency Valuation & Translation

What is the difference between Foreing Currecy Valuation (FAGL_FC_VAL) & Foreing Currency Translation (FAGL_FC_TRANS) ?
help.sap.com

Hi,
Foreign currency valuation FAGL_FC_VAL is a place where we valuate the foreign currencies to the particular local currency and post the differences to either exchange loss or gain.
Foreign currency translation helps us to transalte the forein currency to loacal currency with out calculating the gain or loss derived from exchange.
Parallel currency can be valuated in T-cd:FAGL_FC_Trans.
Thanks,
Shilpa.A
Edited by: ashilpa54 on Mar 22, 2011 9:37 AM

Material valuation difference in FI and MM area for P.O in foreign Currency

Seek assistance in solving the following issues related to P.O in foreign currency. Thanks in advance
1, For purchase orders in foreign currency, during MIGO,in the FI document, the inventory value which include cost payable to the vendor, taxes, CHA and freight are calculated in foreign currency and the company code currency value is arrived by multiplying the total inventory value with the exchange rate prevailing in Ob08 on the posting date of MIGO, instead of adding the values of basic price converted to local currency at the rate prevailing on MIGO, Custom duty at the rate prevailing on Customs Miro and Freight CHA etc which are inputted in local currency and converted to P.O currency in P.,O, at the exchange rate in P.O
The value thus arrived is different from the actual value paid since the freight and CHA are in co code currency in the P.O and converted to P.O currency in P.O with exchange rate prevailing on the date of P.O and Custom duty paid in local currency is at the rate prevailing on Custom MIRO.
2, Freight and CHA are entered as condtions in the P.O and the values entered in local currency. These are converted to P.O currency by the system at the exchange rate prevailing on the P.O date. During MIGO in the FI document the values for these are arrived by multiplying the value in P.O currency with the exchange rate prevailing on MIGO. for e.g. the CHA lumpsum entered as INR 20,000 is converted to $ 400, assuming the OB08 rate on the date of P.O is 50. if on the date of MIGO OB08 is 60, during MIGO, in the FI document entry for local currency the CHA charges become 24000. ( 400 x 60 ). While the actual amount is 20,000. the same scenario exist for freight too which is entered in local currency.
WHAT IS HAPPENING
1. Foreign Vendor - Foreign Currency X OB08 rate on MIGO Posting Date
2. Freight - Company Code Currency Converted to Foreign Currency as per OB08 rate on PO Creation Date X OB08 rate on MIGO Date
3. CHA - Company Code Currency Converted to Foreign Currency as per OB08 rate on PO Creation Date X OB08 rate on MIGO Date
4. Customs - Company Code Currency Converted to Foreign Currency as per OB08 rate on Actual Customs Payment Date X OB08 rate on MIGO Date
WHAT IS REQUIRED
1. Foreign Vendor - Foreign Currency X OB08 rate on MIGO Posting Date
2. Freight - Company Code Currency Converted to Foreign Currency as per OB08 rate on PO Creation Date X OB08 rate on PO Date
3. CHA - Company Code Currency Converted to Foreign Currency as per OB08 rate on PO Creation Date X OB08 rate on PO Date
4. Customs - Actual Customs Duty paid in Company Code Currency through Customs MIRO

Hi
i am still waiting for someone to put a comment on this thread
regard
Nabil

Currency translation, valuation and coversion

Hi Experts,
Please let me know what is the diffrence between valuation, translation and conversion of currencies and how can it be done?
regards
kumar

Dear Kumar,
In IMG under
SAP Netweaver -> General Settings -> Currencies
-> Check Exchange Rate Types
Exchange rates for different purposes for the same date are defined in the system as exchange rate types.
If you need to carry out currency translations between a number of different currencies, you can simplify exchange rate maintenance by entering a base currency for the exchange rate type. Instead of entering translation rates between every single currency, you then only need specify the translation rate between each currency and the base currency. All currency translations then take place in two steps - into the base currency and from the base currency into the target currency.
The base currency is DEM. You want to translate FRF to CHF. To do this, the following entries must be made in the table for maintaining currency translation rates:
o Ratio for FRF -> DEM
o Ratio for CHF -> DEM
Translation from FRF to CHF is then carried out automatically. The translation is done as though this exchange rate (FRF -> CHF) was actually entered in the conversion table.
In this example, the base currency (DEM) is the To-currency and FRF or CHF the From-currency.
For exchange rate relations within the EU, it is a legal requirement that the base currency (EUR) is the From-currency. You set the indicator for this in the BCurr=from field.
SAP Netweaver -> General Settings -> Currencies
-> Enter Exchange RatesExchange rates are required to:
Translate foreign currency amounts when posting or clearing or to check an exchange rate entered manually
Determine the gain and loss from exchange rate differences
Evaluate open items in foreign currency and the foreign currency balance sheet accounts
The exchange rates are defined by period ("valid from").
The function has been improved. Choose the activity Define Exchange Rate Input Worklist or Assign Exchange Rate to Worklist.
The system uses the type M exchange rates for foreign currency translation when posting and clearing documents in the activity Enter Exchange Rate. An entry must exist in the system for this exchange rate type. The exchange rates apply to all company codes.
The exchange rate relations for currency conversion are only displayed here. Read the chapter Define Translation Ratios for information about exchange rate relations maintenance.
You define:
the rate types under which you want to store your exchange rates in the step
"Check Exchange Rate Type"
the required currency keys in the step "Check Currency Codes"
the conversion factors for
-   the currency pair
-   the exchange rate type
-   the date
in the step "Define the Conversion Factors for Currency Conversion"
Currency Valuation: - To create your financial statements, you have to perform a foreign currency valuation. This valuation covers the following accounts and items:
·        Foreign currency balance sheet accounts, that is, the G/L accounts that you run in foreign currency.
The balances of the G/L accounts that are not managed on an open item basis are valuated in foreign currency.
·        Open items that were posted in foreign currency.
Open items that are open on the key date are valuated in foreign currency.
You have the following options for the foreign currency valuation:
·        You can perform the valuation in local currency, (company code currency), or a parallel currency (for example, group currency).
·        You can also use different valuation methods (for example, lowest value principle).
·        If you want to translate additional currencies from the local currency, foreign currency valuation automatically performs a currency translation.
Regards,
Naveen.

Currency translation problem for calculated key figure

Hi All
I have a problem with the currency translation for a calculated key figure.
I have a requirement to show the MM consignment stock value in the specified currency from the selection screen.
For consignment stock, there is no value maintained in the system. So for this we need to calculate the value as below
Restricted key figure: RKFConsignment stock: Total stock with special stock indicator restriction "K"
Calculated keyfigure: Consignment stock value = Nodim( RKFConsignment stock) * (Standard cost / price unit).
Here, in the calculated keyfigure properties --> I have used a currency translation for the 0CALMONTH.
The query has selection on the 0calmonth.
But in the result the I am getting unexpected results.
Do we have any inconsistencies in the currency translation on the formulas?
Please help me on this.
Regards
S.R

Hi All
I have noticed something. I changed my query date selection to Calendar day - Keydate instead of calendar month.
And I have changed the currency variable to fixed exchange rate "CHF", it is working fine.
I think I have some problem with the currency translation variable.
Could anyone of you please send me the currency translation variable for Calendar month with the below parameters
exch rate type : M
Time reference : 0CALMONTH
End of month
Target currency for a variable : < var created on 0currency>
For my report, i need calendar month selection, currency selection.
Please help me with your ideas.
Thank you
Regards
S.R

Currency Translation for Calculated Key figures

Hello Friends I want to use the Currency Translation for Calculated Key figures.
But when I go to Query and go to conversion tab it is always greyed out. Does that mean we can set the fixed conversion type for calculated key figures. like ZSAD Total debit - credit -flow value.
What is the way to do fixed currency translation in query for calculated key figures.
All the below is done now just want to specify this in query but I can'nt since it is greyed out.
All the below is done
I have created a Currency Translation Type " FiscperConversion" "ZVHGR" now this has Exchange Rate Type from Variable "ZVARN" (Which is a variable single value manual input on 0RTYPE Infoobject for exchange rate.)
2. Now Currency Tab: Target Currency is selected from Variable placed in the Report. ZRPVAR.
3. Now the Variable Time Reference is used. Standard Infoobject 0FISCPER
which is beginning of period.

Hi soniya
Your calculated KF is result of some calculation ...so system will not allow u to do any translation on it...to get CT on CKF you should do it on base key figure...still if you wish to do then you can create a formula variable having processing type a customer exit...write code in cmod to rad exchange rate and multiply ur CKF by this formula variable....
Thanks
Tripple k

Currency Translation on Calculated Key Figure in BW7.0

I am trying to use a currency translation in BW7.0 on a calculated key figure. Unfortunately the options for this are greyed out in the conversions tab for the calculated key figure.
I took a simple example. I have a KF that is revenue. I put this KF in the query and I can specify the conversion for it.
I then took the same KF and put it as the only argument for a CKF. For this CKF whether it is local to the query or a global CKF, I cannot specify a currency conversion.
If I do the same experiment in the 3.5 design tool, I am able to specify the currency translation.
Is there some system setting that enables it in the 7.0 query designer?
Thanks.
KB

Hi,
Have a look at the links:
http://help.sap.com/saphelp_nw70/helpdata/en/80/1a682de07211d2acb80000e829fbfe/frameset.htm
http://help.sap.com/saphelp_nw70/helpdata/en/f1/0a5529e09411d2acb90000e829fbfe/frameset.htm
Best Regards,
Rajani

Message no. 06211 Currency translation error in net price calculation

Hi,
When i am creating purchase order i am changing currency from INR to JPY for FOB condition type only, And system issuing error message Currency translation error in net price calculation. Document currency is INR.
When i am using USD i am not getting this error.
I have checked table OB08 and both conversion maintained INR to JPY AND JPY to INR valid from 01.01.2012
Any solution for this please.
Thanks in advance.

Hi, Check in T-code M/08 for your import prizing procedure,what have you maintained for subtotal for gross price condition (PBXX,PB00), Maintain over there as '9', also for JPY currency there is issue with decimal also, ratio maintained in 100:1 ratio.
Edited by: tej yadav on Jan 6, 2012 1:29 PM

Foreign Currency - Revaluation / Translation

Hi:
I wanted to discuss and understand the best practice for foreign currency revaluation and translation routine.
This is how we do and configured the revaluation / translation routine:
Valuation Area:
SG for revaluation - Currency Type 10 (Local)
S2 for translation - Currency Type 30 (Group)
Valuation Method: EVR (Always Valuate)
In the ledger currencies for 30, "Translation taking transaction currency as a basis".
Plus other coniguration for account determination (both revaluation and translation). - OBA1 and "Define Account detemination for currency translation".
Based on this configuration, we run following transactions at month end:
Revaluation: FAGL_FC_VAL using S2
Translation: FAGL_FC_TRANS using SG
So what it does is, it revalue document currency into local currency and then translate document currency into group currency.
Ideally, what should be as per GAAP is: Revalue document currency into local currency and then translate local currency into group currency.
In our configuration, we are not able to translate out of local books. The configuration translates from document currency to group currency.
Are we missing anything in the configuration or this is standard? What is the best practice or how other companies are running the revaluation/translation routine?
Scenario is:
Document Currency: AUD
Local Currency: GBP
Group Currency: USD
Please advise.
Thanks.
Rahul

As per US GAAP, FASB 52 -
Step (1):-
Re-measurement - Revalue all the balance sheet accounts/open items with 'Document currency' other than 'Local currency' based on spot rate and post this difference to a P&L account (Unrealized Exchange Gain/Loss Account) in 'Local currency'. Do not impact the 'Group currency' here.
Step (2):-
B/S Translation - Revalue all balance sheet accounts from 'Local currency' to 'Group currency' based on the spot rate and post the difference to Cumulative Translation Adjustment account (CTA) in 'Group currency' only. CTA is balance sheet account.
Step (3):-
Unrealized Exchange Gain/Loss Translation - Revaluate the P&L account that's been used in step(1) for exchange differences, from 'Local currency' to 'Group currency' based on spot rate and post the difference to Cumulative Translation Adjustment account (CTA) in 'Group currency' only.
Notes:-
1) Equity and retained earning accounts are never revaluated.
2) CTA account is grouped together with Equity accounts in reporting.
Regards,
Ganesh

Incorrect Foreign Currency Calculation

GoodDay,
Can anyone provide some guidence on the cause of the follwoign problem.
Local Currency (LC) - TTD
Foreign Currency (FC) USD
Money will been taken out of our CItibank Acount creating a credit to the account 10600 Citi NY USD REAL. On the day the acocunt is credited in Foreign Currency the equivalent in Local Currency is calucated based on the rate entered on that day in the rate table.
When the money is re-entered into the account, in Foreign Currency on another day, the local currency equivalent is also calcualated based on the rate entered on that day from the rate table.
The differerence due to the exchange rate is stored in our 50140 Gain on Forex Transaction G/L Account.
The problem is the calcualtion from the foreign to local currency when the money has returned to the account is incorrect even though the rate is correct in the rate table.
The exchange rate the day the money came back into the account is 6.34585. However the system appears to have calculated it 63.5485
Therefore, Foreign Currency Amount US 85,270,000.00 equates to Local Currency TT 5,411,106,295.00
I am of the belief it is a data issue as logically the system cannot choose which calculation to do correclty and which one not to.
Thanks
Niketa

Hi,
currency conversion always happens based on a exchange rate given for a conversion factor (eg 1 unit 'from' currency is converted to 1 unit 'to' currency).
Check this conversion factors in t-code OBBS for the exchange rate type + rate you have entered.
Maybe conversion factor is maintained like TTD to USD is 1:1 whereas USD to TTD is 1:10.
Best regards, Christian

Translation using foreign currency units per dollar

We are currently using the built-in HFM translation mechanism for most of our accounts, i.e., we enter currency rates in dollars per foreign currency unit for both a balance sheet rates and a P&L rate and allow HFM to translate. Is it possible to use the default translation to translate using inverted rates, i.e., foreign currency units per dollar? This would imply, of course, that the rate would be divided into the entity currency amount instead of multiplied.
I realize that we could do this via translation rules for all of those accounts, but I'd prefer to use the default mechanism, if possible.

Sofia,
I don't recall the reason for having exhange rates use different options in the intercompany transaction module (ICT). I was part of the team which designed this module back in 2004/2005, and I suspect this was simply a request by someone at the time to allow exchange rates used in matching intercompany transaction matching to be entered either as a divide or as a multiply. This feature applies only to IC transactions, and has no effect at all on the core functionality of HFM, which uses only a multiply approach. Once intercompanty transactions are matched within the ICT module, the remaining, umatched balances each period are posted to the relevent HFM accounts. In many ways this is like using line item details for intercompany balances, but better since HFM can match at the "line item" level.
To be very clear:
1) ICT: intercompany transaction module. This is a module within HFM that allows invoice/transaction level records to be loaded into HFM and matched based on a series of flexible criteria. This is covered in detail in Chapter 13 of the HFM Administrator Guide.
2) ICP: intercompany partner. This is a dimension within HFM that leverages the Entity dimension, where period end balances for/from each entity's partner is loaded into HFM. Intercompany eliminations are performed according to either HFM's default rules, if you use Consolidation Rules = "N" or "R", or according to your own rules if Consolidation Rules = "Y" and you have provided your own Sub Consolidate routine.
The ICT module, though feature rich, is not widely used. On the other hand the ICP dimension is used in a majority of HFM applications worldwide.
I hope this helps clarify the questions.
--Chris

Automatic translation into foreign currency

Hello
I'm trying to add a warning message to accounting view in creating material (MM01).
The reason is the exchange rate. If i change the moving price and do not click on the "translate from local currency" button, it let me save the material with the wrong exchange rate.
In trasaction MR21 it gives me the warning message: "No automatic translation into foreign currency occurred".
Is there a way to add this message to MM01??
Thanks

Hi Enrique,
The final step in CKMLCP enters future prices for all materials based on the actual prices of the period.
You could Use CKMPRPN the 'maintenance of future prices' with it's rule based approach to change the data before activating with CKME.
You could
1. delete the group currency future prices (CKMPRPN)
2. release the new standard prices in company code currency (CKME)
3. create future prices in group currency by adopting the (previous month's) V-price as future price (CKMPRPN)
4. release the new standard prices in group code currency (CKME)
I am not sure if you could also distinguish the validity dates between both currencies with CKMPRPN. If yes, that might be better than deleting and rebuilding the price.You could change the date for one currency into the future, use CKME, change the date back and use CKME again.
A disadvantage of the procedure would be that you will not release the cost component split from CKMLCP. In step 4 only the new price will be released and the split will be created from the former split. In step 2 the original split from CKMLCP will be activated.
best regards,
Udo

Calculation of Foreign Currency Translation Reserve (FCTR)

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