Forex Qs: ob08 How do the Indir Quot and Dir Quot work?

Question

I have 3 currencies, said IDR (Local currency), HKD (Doc currency), and CHF (Group currency)
How to read these currencies in the ob08?
I key in HKD100, and I get 114,460 IDR and 15.03 CHF, and I check document, and found that the exrate for HKD/IDR is /0.87365.
Could anyone guide me how to read the ob08, and How do the Indir Quot and Dir Quot work?  How can system generate HKD/IDR: ->  /0.87365.
Thanks in advance.

Answer 1

Hi
First let us understand what the direct quote and Indirect quote is.
Direct quote means when one unit of Foreing currency  if translated result into how many units of local currency.
Local currency is the company code currency what u would have defined for your company.
In your case it looks like IDR is the local currency. So all other currency u enter in the system is treated as Foreign currency. So HKD is foreign currency.
Direct Quote: One unit oh HKD is equal to 0.87365
When you are posting a document  either u can give your exchange rate if it is available or else system will apply the average rate(Rate typeM) stored  in the table(OB08)
In your example it appears system wold habe taken the rate from the exchange rate table.
Then the indirect quotation is how many unit of local currency u will get for each unit of foreign currency.I IDR=how much HDK it is the reverse of Direct quote.
The concept of Group currency is used if a client is having different company code having different co code currency. Then to consolidate the accounts group currency comes in to picture.
Regards.
Surendra