Exchange Rate Concept. e.g. - 1.00 EUR = 67.1500 INR

Dear Experts,
Can anybody please explain the concept of exchange rate.
How calculation is made of exchange while currency conversion.
For example -
Current exchange rate - 1EURO = 67.1500 INR
Import Purchase order quantity - 50
Unit Rate = 463.
Please brief me on Currency Exchange Rate in details.
Additional info is required on it.
Thanks in Advance.

HI,
When entering into internal foreign exchange transactions, you can also use the report Exchange Rate Overview for Internal Foreign Exchange Transactions. This gives you an overview of the current exchange rates for each currency. You can also use this report to check the Customizing and the market data for completeness.
You define exchange rates in the system for the following purposes:
Posting and Clearing
To translate amounts posted or cleared in foreign currency, or to check a manually entered exchange rate during posting or clearing.
Exchange Rate Differences
To determine gains or losses from exchange rate differences.
Foreign Currency Valuation
To valuate open items in foreign currency and foreign currency balance sheet accounts as part of the closing operations.
You can maintain exchange rates in OB08 between two currencies.
Thanks & Regards,
Kiran

Similar Messages

  • Exchange rate diff. accts are not defined for account 16145110currency INR

    Dear SAP Gurrus,
    I am facing a problem while making  payment against invoice, receiving payment against invoice, clearing advance payment and  advance receipts through T-code F-53, F-28, F-44 and F-32.  System is allowing me to select the invoices against which I want to do the clearing but when I go for simulation I am getting the following error -
    ' Exchange rate diff. accts are not defined for account 16145110currency INR'.
    When I click on the error message the performance assistant gives methe following details:
    Exchange rate diff.accts are not defined for account 16145110 currency INR
    Message no. F5062
    Diagnosis
    The accounts for posting the exchange rate differences could not be determined. For the specified G/L account and the specified currency key, no corresponding exchange rate difference accounts were determined.
    System Response
    The system cannot generate the exchange rate difference posting.
    Procedure
    By pressing ENTER, you achieve that the document is reset to a status without automatic posting. In another window, you can complete the default settings for exchange rate differences and post the document afterwards.
    Proceed
    My client is local. Even the local currency is set to 'INR'. There is no foreign currency involced while making invoices, payment and receitps.  Eventhough the system is giving me error.  As a result I am not able to clear open items. Please give me some feasible solution so that I can clear the open items.
    Thanks in advance
    Regards
    Shreyas Wani

    hi,
    As you said, you are not maintaining any Exchange rate differences, It may not be required a Exch rate Diffrences account.
    Please check whether you have created any Group / Parrallel curencies etc in co.code level.
    Please go through the notes 209580 / 89531, hope it helps you.
    Regards
    Kanna

  • Fixed Exchange Rate in Journal Entry- How to use?

    Hi Expert,
    We need to create a journal entry with different rate VS exchange rate table.
    Is there any way to ovirride the exhange rate during the journal data entry?
    I hv already reads discussion on this topic but i want like following Scenario
    In Exchange rate And indexes i hv define EUR=80 And INR=1
    Now i want following Manual JE
    GL/BP code                   Debit(FC)                Credit(FC)                 Debit                       Credit
    Any Foreign Curr Acc       EUR 10.00                                            750.00
    Any INR Curr ACC                                          EUR 10.00                                             750.00
    I have already make tickmark on Fixed Exchange rate    EUR       75.00  
    but it is not working it shows following JE
    GL/BP code                   Debit(FC)                Credit(FC)                 Debit                       Credit
    Any Foreign Curr Acc       EUR 10.00                                           800.00
    Any INR Curr ACC                                         EUR 10.00                                               800.00
    Plz Replay i m waitting.......my client want result on urgent basis.....
    Regards,
    Sandy

    Hi Sandesh,
    Do you mean after you have added JE, you review it and it is not similar to the JE when you add?
    Toan

  • Exchange rate difference while posting ME21N MIGO and MIRO

    Hi All,
    I am facing one problem with exchange rate type between M and EURX  and EURX is maintanined in the SPRO>SAP Netweaver>General Settings>currencies>Check Exchange rate types
    EXRT :  EURX
    Usage    :  EMU Reg,fixed                       
    Ref.Curr    : EUR  
    Buy.ra.at   
    Sall .Rat.At    
    Inv   
    EMU   :X
    FIXED
    Scenario:
    Company(USD) is maintaning Exchange rate type: M and no exchange rates are maintained for USD:EUR or EUR:USD.
    Eur is maintaing in Exchange rate type EURX.
    1) PO (ME21N) is posting for the Vendor on posting date 01/01/2008. Transaction currency is EUR and company code currency is USD and Quantity : 25000
    --> Exchange rate 'M' is not maintained for EUR and values are picking from the EURX Type. In the PO, Exchange rate is picking correctly from the EURX table entries on 01/01/2008.
    2) MIGO: GR  is posted on 01/25/2008 and with 15000 Quantity. Exchange rate is getting currecly from the table on 01/25/2008.
    3) MIRO: IR is posted on 02/15/2008 and Vendor Account is picking correct exchange rate from the table but GR/IR account is caluculations EUR:USD is differntly .
    Note: It is not GR based IR.
    Ex:
    PK AC                DESCRIPTION                    Tran Curr (EUR)    Local Curr  USD
    31 5004789     Vendor Account                       24,718.48-            38,777.12- USD
    86 2525000      A/P-GR/IR NON-INV                24,718.48            38,883.73  USD
    91 6584785      SERV-OTHER O/S                    0.00                 106.61- USD
    Here GR/IR account is cal dirrently.
    4) Credit Memo posted against IR on 03/25/2008. Exchange rate is given while posting CM same as Invoice. But system rate is different. Here also how the GR/IR is calculating is question is it not taking from Table or from any other rate types . Same problem like IR for GR/IR account.
    Entry is posted like
    PK  ACC         Description                            Tran curr(EUR)  Local curr(USD)
    21 5004789     Vendor                                   24,718.48        38,777.13  USD
    96 2525000     /P-GR/IR NON-INV                   24,718.48-      38,892.22- USD
    81 6584785     SERV-OTHER O/S                     0.00            115.09  USD
    This problem is same like GR and also SPL document is posting differenly for ZG and ZL ledger.
    ZL ledger is posting same like Accounting CM document ZG is posting with the different amount . This different amount is nothing but the exchange rate as per the posting date 03/25/2008. Exchange rate on 03/25/2008 is differe from IR date 02/15/2008 .
    ZL ledger is calculating based on the 02/15/2008 date and ZG ledger is calculating based on the 03/25/2008 . Difference between Exchange rate entered in the CM and 03/25/2008 table entry rate is showing exchange rate difference field in the Addtional field in the document display.
    Thanks in Advance.

    Dear Friends,
    Thanks for your helpful answers, actually we are in big export business. So we have to clear 100s of invoice lines with payments at one go, (which obviously being booked at different dates) so it would be very difficult for the user to go one by one invoice.
    My concern is, why system does not calculate exchange rate difference based on actual documents, i.e. Invoice to payments only. I think there might be some configuration needed to implement this functionality.
    Please help.
    Regards

  • How to post the revenue on exchange rate in SAP ?

    Hi All,
    a Company gets a g.l. bank account in USD (account currency). The local currency is EUR.
    2010.01.01: its balance was 9.527,23 USD (account currency). Given a currency exchange rate 1 USD x 1,4406 EUR, the amount of the account in local currency was 6.613,38 EUR.
    2010.01.15: the bank account is closed. Given a currency exchange rate 1 USD x 1,4374 EUR, the amount of the account in local currency is 6.628,10 EUR
    When the account bank is closed the balance in local currency  is 14,72 EUR -
    2010.01.01 --> 9.527,23 USD (account currency); 6.613,38 EUR (local currency).
    2010.01.15 --> 9.527,23 USD (account currency); 6.628,10 EUR (local currency).
    20.01.15: in local currency I've to post a revenu of 14,72 EUR
    Could anyone tell me which account posting I've to do for this revenue?
    Thanks

    The differemce is due to exchange rate difference post the difference in a new g/l name it exchange rate diff. revenue account for more read below:
    Exchange Rate Rounding Differences
    When an invoice is posted in a foreign currency, the amounts are translated into local currency. Since the system rounds off the amounts in each posting line, this can lead to rounding differences due to the currency translation.
    These differences are posted to an expense or income account.
    During the document check, the system displays a posting line for the corresponding account.
    Thanks,
    Vishal

  • PO Exchange rate date

    Hi,
    I've an issue. Imagine that:
    The group currency is CHF
    Company Currency is GBP
    Document Currency is EUR
    The exchange rate of the PO is from EUR to GBP. Now I need to get the correct PO Price in group currency CHF.
    The PO date is 01.02.2011. If I check the exchange rate for the PO date I'm not getting the same value that I can see in the PO header. But if I use 31.01.2011 I see the same amount. So I can't use the PO date in order to get the correct exchange rate from document currency (EUR) to group currency (CHF).
    Is there any way that I can do this?
    Cheers,
    JS

    Hi Biswajit,
    Use the user parameter EVO to indicate that no price adoption from last Purchase Order must take place:
    IMG: MM -> Purchasing -> Environment data -> Default values for Buyers -> Setting for Default values.
    Select or setup a default value and on the "price adoption" tab you may choose how copying of conditions from last purchase order must behave. Select "Do not copy". Then assign this default value to the user, using the EVO parameter.
    Prashant

  • Problem with depreciation area (Incorrect currency exchange rate is used)

    Good day to all SDN forumers!
    I'm having a problem with one depreciation area that we set up. The reason why we configured this depreciation area is for us to enable to monitor all asset postings in another (group) currency aside from the local currency. We set it up in such a way that the depreciation would not post and would thus only "convert" the asset postings to group currency using the table rates in table TCURR (via OB08).
    The problem is despite having defined an exchange rate for the current period, the system still picks up the exchange rate for 01/01/2001 which is incorrect. This affected all reports which displays incorrect values whenever I view the postings using the 2nd depreciation area we set up. Is there a way we can correct this?
    I'd really appreciate your comments and suggestions guys. Thanks a lot and more power!

    Update:
    I created a new depreciation area by copying an existing area and updated some of the configuration. The problem is still there though, since the depreciation area still reflects the <b>incorrect</b> rate (similar to that of the previous depreciation area) whenever I access it using Asset Explorer. What's surprising is that even though I've already set the exchange rate (e.g. USD to EUR)  to match that of the asset's capitalization / acquisition date, the posted values still do not reflect what I defined in table TCURR. Instead, it reflects the exchange rate used by the old depreciation area. Help anyone? We are already in a production client and transfer/retirement of all the assets is not an option the client would like to undertake.
    Edited by: Patrick on Nov 6, 2008 4:45 AM

  • Wrong Exchange rate in PO

    Hi All
    While creating PO system automatically picking the exchange rate 44.17 (indirect quote) for Euro, which is maintained in OB08 under exchange rate type EURX. But in OB08 we have also maintained EUR exchange rate under exchange rate type "M" for current date i.e. 66.73.
    We want system to pick up exchange rate maintained under exchange rate type M & not maintained under exchange rate type EURX.
    While crating the PO system is picking up the EUR exchange rate maintained under EURX i.e. 44.17
    Is there any where we have to maintain OB08 so that system will pick up exchange rate maintained under exch. rate type M i.e. 66.73?
    Thanks
    Sonal

    Hi,
    Pls. find below the details,
    First you need to assign exchange rate for EUR vs INR in OB08 transaction.
    Pls. refere exchange rate type as M
    and maintain EUR to INR as well as INR to EUR in "M".
    Pls. don't check "Exchange rate fixed" in the P.O..
    Now, you can create the purcahse order and see.
    Hope, it will solve your problem.
    Pls. award points if found suitable.
    Regards
    Rifaie.M

  • Exchange Rate Maintenance for two company codes..

    Friends,
    My client is having two company codes
    X = India
    Y = USD
    US Company code is live for the last few years and India Company code is created recently and the same is live now.
    Now when the US company code creates Purchase Orders /  Scheduling agreements, the following error is encountered.
    "Enter rate INR/EUR rate type M for 31.07.2008 in the system settings.:"
    Now my question to the forum is that
    1. If we maintain the exchange rates in OB08 will there any other effect ?
    2. Is this error because One more company code is added to the same client which is operating in INR ?
    3. When US Company code is not all transacting with India Company Code why is this error encountered.
    Appreciate if some one can explain the pros and cons of this please. I am basically an MM consultant and I would also like to know the FI impact in this scenario, hence posted this question in FI forum.
    Regards

    Hi,
    At the time of initial installation SAP would make EUR as base currency, so any new company code you create needs to have an exchange rate defined to the base currency EUR.
    In your case you can define exchange rate to EUR and process PO, as per my knowledge there will not be any impact of this.
    Thanks,
    Ramesh.

  • Exchange Rate Type M getting updated automatically next day

    Hi ,
    We upload rate through t.code TBDM for MTRE exchange rate type but very next system  turn up same result for exchange rate type M
    For example
    Suppose today 09.09.2011 i upload rate only for MTRE exchange rate type for following currency
    AED                 EUR           MTRE04092011                   5.26447                                                          
    ANG                 EUR           MTRE04092011                   2.52369                                                         
    ARS                 EUR           MTRE04092011                   6.01392                                                      
    AUD                 EUR            MTRE04092011                   1.33905   
    latter on if check in TCURR table or OB08 tcode i will get below entry
    ExRt From To  Valid from Exch. Rate Ratio Ratio
    M    AED  EUR 05.09.2011   /5,26447    0     0
    M    ANG  EUR 05.09.2011   /2,52369    0     0
    M    ARS  EUR 05.09.2011   /6,01392    0     0
    M    AUD  EUR 05.09.2011   /1,33905    0     0
    MTRE AED  EUR 04.09.2011   /5,26447    1     1
    MTRE ANG  EUR 04.09.2011   /2,52369    1     1
    MTRE ARS  EUR 04.09.2011   /6,01392    1     1
    MTRE AUD  EUR 04.09.2011   /1,33905    1     1      
    my question how M is getting update.
    Regards
    Prakash Sharma

    Hi
    Here you need to concentrate on Direct or indirect quotation
    If you are using EUR to SEK (LC) - use direct quotation as 8.8307 1:1 relation
    If you are using SEK to EUR - use indirect quotaion as 0.1132 1:1 relation
    Pls let me know if you required further help
    Reg
    Vishnu

  • Listprices in Euros, company currency in GBP variabe exchange rate.

    Hi
    I'm new to the forum so please excuse any etiquette slip ups..
    We are based in the UK part fo a larger european group. Our plant / company currency is GBP, we plan to wswithc to Euro list pricing to being it into line with Euro zone. We need a mechanism to switch the exchange rate in the sales order from EUR to GBP at a rate that can be altered by the user on an order by order basis. At the moment as the base currency is GBP the rate is fixed at 1.00 even though the EUR prices have been converted. anyone got any ideas, our techies are scratching their head..
    Regards
    Gareth

    Hi Bowengar,
                           If i understand your requirment, you want the possibility of user changing the currency in each sales order . First of all currency in (Document) sales order gets defaulted from the customer master which can be changed manaully in the sales order by "gotoheader salesdoc currency". Her the currency can be change by user. and When it comes to the exchange rates , system determines the exchange rate based on the entries maintained in the table "TCURR"(Transaction "OB08). You can specify the exchange rate type in customer master and for the exchange rate type and from GBP-EUR, YOu can maintain the rates in OB08. If you want the exchange rate which gets passed to accouting, user can always enter it manually in sales document headerAccounting tab.  Once you process the delivery and want to create the billing document ,system takes the exchange rate to be determined based on the option specified in to copy control "VTFL" at the item level/Kindly please let me know If you need any more information on this.
    Regards,
    Ram Pedarla

  • Exchange rate difference in f-03

    Hi all
    pl. help me. I am not able to clear open item in f-03 which is maintained in BRL.  I am posting payment in usd. the error reads:
    Ex.rate diff.accts are incomplete
    Diagnosis
    The accounts for posting exchange rate differences could not be determined. For the specified G/L account and the specified currency key, the accounts are only specified incompletely. Either the accounts for the implemented exchange rate difference, the accounts for the valuation differences or the balance sheet adjustment account are missing.
    System response
    The system cannot generate the exchange rate difference posting.
    Procedure
    By pressing ENTER, you achieve that the document is reset to a status without automatic posting. In another window, you can complete default settings for exchange rate differences and post the document afterwards. 
    I have called transaction OBA1, and entered the GL a/c and currency BRL.  Even i cannot save it says
    "Enter line items first or choose open items"
    pl reply friends urgently
    Thks
    uma

    Hi Uma,
    Exchange Rate has been defined both the end. Like INR = USD and USD = INR.
    Here you are not yet defined GL account for Exchange Rate Difference account (Gain or Loss).
    T.Code OB09 Define G/L , Currency and Currency Type.
    Before that you would have the GL account please create in FS00.
    Hope it will help you.
    Regards,
    Sivakumar Sathiyamoorthy
    +919916131375

  • Ambiguous INR/EUR exchange rate relations

    HI Experts,
    I am stuck with this problem from past one week please help.
    I have loaded data from SRM system to BI system and there is no problem with data in PSA but when tried to load data from PSA to ODS using DTP i get
    "Ambiguous INR/EUR exchange rate relations" Message and click of OK it dumps with message_x
    i further debuged and that this is happening in RSW_CURRENCY_TRANSLATION FM where it is trying to convert Document currency to local currency.
    I also check in OB08 where exchange rate is also maintain properly
    below is the parameter i am sending to FM
    Test for function group RSW0
    Function module RSW_CURRENCY_TRANSLATION
    Uppercase/Lowercase
    Import parameters Value
    I_CTTNM 0SR_DEFCUR
    I_AMOUNT 0,0000000000000000E+00
    I_SCUR INR
    I_TCUR EUR
    I_TIME_IOBJVL 20070323
    I_SCUR_IOBJVL
    I_TCUR_IOBJVL
    I_PERIV
    I_RATE 0,0000000000000000E+00
    I_VDATE
    and below are the entried maintained in OB08
    M 01.10.2005 X 1 EUR = 56,00000 X 1 INR
    0022 01.03.2000 X 1 INR = 1,00000 X 1 EUR
    M 01.10.2005 X 1 INR = 0,01700 X 1 EUR
    M 01.03.2000 X 1 INR = 1,00000 X 1 EUR
    Please help.......
    Best Regards
    Falgun

    Hi Anil,
    I am getting the same problem. How did you solve the problem in your system?
    Thanks and regards,
    Renato Morais

  • "Ambiguous EUR/INR exchange rate relation "

    Hi All,
    While saving stock in "MB1C"
    I encounter an error "Ambiguous EUR/INR exchange rate relation " I have tried to post new exchange rate in "ob08" for "M" but its not serving the purpose.
    Plz help
    Regards

    hi
    u have to omaintain exchange rate for type M for Eur to INR and INR to EUR in OB08
    regards
    kunal
    award if helpful

  • Exchange rate customizing - SKK/EUR

    As Slovakia will be joining the Euro area on 01.01.2009, I did the
    currency customizing as explained in OSS Note 1231768.
    In this note is mentioned to one time add the official fixed exchange rate using transaction OB08, with
    validity date 01.01.1800
    My problem is that our datawarehouse department needs to use the exchange rate added in OB08 with
    the most recent validity date. In terms of date, the most recent rate will be the one from December and the rate will not be correct for their tools (as the correct one will have validity date 01.01.1800).
    My question is can I add another line in OB08 with the official rate and validity date
    01.01.2009? What are the potential impacts?
    Many thanks for your help,
    Regards,
    Ben

    Hi,
    You need not worry about the OB08 entry for rate type EURO, it is needed by the system to determine the euro conversion.  You will continue to update the other rate types like M, B, G with the EUR/SKK rate till 31.12.2008.  Once you are on 01.01.2009, the currency of your country/company code will become EUR and you will not need to use any rate to convert to EUR.
    BW will have no issues here, as it would also be using the rate type M, G, B etc for conversion till 31.12.2008.  You will need to carry out the changeover steps in BI also.
    Cheers.

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