Logic about exchange rate

Hi friends,
Need logic for currency exchange rate -- Please provide more logic about the conversion rate especially in the scenario of reprinting.
User wants to print the amount in EUROs in the invoice under the total amount in dollars.
I need to get this request apporved by SD Architech, so please provide me logic in detail--its urgent .....
Thanks
Suchi

Take a look at these function modules:
1. CONVERT_TO_LOCAL_CURRENCY
2. CONVERT_TO_FOREIGN_CURRENCY
Exchange rates are stored in table TCURR

Similar Messages

Basic questions about Exchange Rate Differences

Hi Experts?
I have few questions about exchange rates:
1. Currently in 2007, under what circumstances are exchange rate differences not posted automatically? In the previous version, it was this case when invoices are linked to payment, and manual exchage rate differences had to be run.
2. What are unrealized exchange rates? and When do unrealized exchange rates occurs?
3. In account oo logical pinciples, why is there a need to auto reverse Exchange rate differences or Conversion rate differences during the opening of a new posting period??
Much Thanks!
Warmest Regards,
Chinho

Hi Chinho,
you may find useful info in this wiki:
[How does SAP Business One deal with Realised and Unrealised Exchange Rate Differences? |https://wiki.sdn.sap.com/wiki/pages/viewpage.action?pageId=60654139]
& also these 2 EES:
[Exchange Rate Differences|https://psd.sap-ag.de/PEC/calendar/html/recording.php?hck=7a4f07ef7ac81ec31e04d55faffe33bdde93ec2398c338760e0d98adab7ba5acf2c39b2da1782f45e8a5a4d337dedcc647afebddd531782af42bafae98ce7ed5]
[Exchange Rate|https://psd.sap-ag.de/PEC/calendar/html/recording.php?hck=e5397f14c44f8df754617194051dab1ad38f59f08580406c2efd59aa4c0f71616713c2abe76bc503e08f2f5eda4863634f6fe99ad39d46c947c09623b91e53ca]
As a rule, in version 2007 it's the unrealised exchange rate differences on the BP side that are relevant since with the introduction of the unified internal reconciliation engine realised partial exchange rate differences are automatically posted. You also use the functionality to post exchange rate differences for FC GL accounts at a particular execution day.
All the best,
Kerstin

About exchange rate

Is there any way to post the document using MIGO transaction by using exchange rate given by user i.e. ztype exchange rate , this exchange is dependent on type of vendor i.e. if the vendor is outside of europe then while posting customized exchange rate should be taken instead of standard one.
Is there any BADI or BAPI or user exit is available to do it.

You can send exchange rates via RFALEX00 via ALE/BAPI. Set up the ALE connection, message type is EXCHANGE_RATE. Configure the receiver ALE with message type EXCHANGE_RATE and process code BAPI. Do not forget to customize the distribution model on sender with BD64.
The plan a job calling regurlarly RFALEX00.

Exchange rate translation logic for FI and CO

Dear FI gurus
I have question about exchange rate setting.
- Controlling area currency: USD
- Object currency/Company code currency: JPY
- Transaction currency : JPY
- Inverted exchange rate indicator : deactivated.
(So, exchange rate is maintained by each country's subsidiary)
In this case, according to SAP's help,
- Controlling area currency: Converted from Transacton currency(EUR) to Controlling area currency(USD)
- Object currency: Converted from Controlling area currency(USD) to Transaction currency(JPY)
This means that if transaction currency is JPY100, object currency is NOT JPY100, right?
(Because cross rate reference is deactivated and JPY->USD and USD->JPY is different rate)
On the other hand, in FI(OB22), I setup Group Currency which is USD.
In FI, translation logic can be selected whether "From transaction currency" or "From first local currency".
But still different logic from CO side.
So, it seems GL and Controlling area has different translation logic.
How normally global companies manage it?
Yoshi

Dear Yoshi-san,
For a global company, e.g. COMPANY ABC (head office in the USA) has different legal entities in different countries (Japan, Singapore) where the local currencies are different. In my opinion below set up is normal.
Controlling Area ABC
                Assuming all companies (ABC, DEF, GHI) are assigned to controlling area ABC.
Controlling area currency (for controlling area ABC) : USD
COMPANY ABC (Head office)
         Company code currency : USD
         Object currency : USD
    2. COMPANY DEF (Japan entity)
        Company code currency : JPY
        Object currency : JPY
    3. COMPANY GHI (Singapore entity)
        Company code currency : SGD
        Object currency : SGD
Let say for Japan entity, a document of JPY100 (transaction currency or document currency) has been posted. The amount in company code currency is JPY100; amount in object currency will be JPY100; amount in controlling area currency will be USD0.99. (maintain exchange rate table: 100 JPY = 0.99 USD).
If another document of EUR100 (transaction currency or document currency) has been posted. Then the amount in company code currency is JPY 13,800 (maintain exchange rate table 1 EUR = 138 JPY; amount in object currency will be JPY 13,800; amount in controlling area currency will be USD136. (maintain exchange rate table: 1 EUR = 1.36 USD).
As for the third document of USD100 (transaction currency or document currency) has been posted. Then the amount in company code currency is JPY 10,100 (maintain exchange rate table 1 USD = 101 JPY; amount in object currency will be JPY 10,100; amount in controlling area currency will also be USD100, no translation is required.
Kind regards,
John Chin

Generalize Exchange Rates at the of month

Dear Expert,
I want to ask about Exchange Rates at the of month, what I need to do.
Each trasaction have their own Exchange Rates which is different with Exchange Rates and Index in Administration Module.
For Example :
On May 30
Exchange Rates in Administration Module is IDR 9,250.
I have 3 A/R Invoices
Inv A, $ 100, Rates IDR 9,500 = IDR 950,000
Inv B, $ 150, Rates IDR 9,300 = IDR 1,395,000
Inv C, $ 200, Rates IDR 9,450 = IDR 1,890,000
Total A/R will be IDR 4,235,000
On May 31, 2010 I want to set Exchange Rate to IDR 9600.
So the Total for all A/R Invoices will refer to IDR 9600.
I hope that the Total A/R will be
($100 + $150 + $200) * IDR 9600 = IDR 4,320,000
What should I do? and What are the effects in Financial and my A/R?
FYI,
I use SAP 2007 A SP 00 PL 44
My LC is IDR
My FC is also IDR
Thanks

Hi Rajesh,
Thanks for your answer.
I have tried your suggestion, but I have some question :
1. If I don't need going back to my past Exchange Rates for the next month.
Does it mean I don't need creating reversal JE from Exchange Rates Difference?
2. If I don't create reversal JE, I find outstanding value in LC
For Example:
- Open A/R Total USD 100, Rates IDR 9.000, BP Balance in LC will be IDR 900.000
- Exchange Rates Difference in to IDR 10.000, BP Balance in LC will be IDR 1.000.000
- Payment using USD 100, Rates IDR 9.000, Total Payment in LC will be IDR 900.000
So, in LC I still have balance IDR 100.000.
But in FC I don't have any balance, because A/R already close.
Because of Diffrences between Open A/R IDR 900.000 and BP Balance After Exchange Rates Diffrence IDR 1.000.000
Is it a must to create reversal JE for Exchange Rates Difference?
If it isn't a must to create reversal JE, how I can make BP Balance in LC to IDR 0.
Thanks
Regards,
Vicky Oktavianus

Define exchange rate types according to ledgers

Hi Everyone,
I am facing a problem about the exchange rate types.
I want to set different exchange rate types for my leading ledger and local ledger.
for example, the leading ledger 0L is defined for IFRS with default exchange rate type M.
the local ledger LL is defined for our country China and i want to use own-defined exchange rate type say Y001.
is it possible realize like this in SAP.
thank you so much!
regards,
samson

Hi, Samson:
I am not sure whether it make sense to have different exchange rate for same two currencies in different countries, for example, in China and US, exchange rates for RMB and USD are different in same situation, like buy-in...
Your question about exchange rate definition in Non-Leading Ledger - it is impossible to do that in Define and Activate Non-Leading Ledgers.
For the purpose of Ledger approach for parallel accounting, it is used to meet the reporting requirements basically, for example, IFRS or USGAAP or HGB, but not for exchange rate type...
If you get any surpurise information, please share with me. Thanks.
Best Regards, Lawrence

About Fixing of Exchange Rate

hi
i has purchase order with usd purchase order currency ,i used Fixing of Exchange Rate with this purchase order with fixing
exchange rate for good receipt.
as sap said "If you fix the exchange rate, the purchase order currency and the exchange rate cannot be changed during invoice verification".
but for this usd purchase order ,vendor incoming rmb invoice .how can i process this .

Hi,
During MIRO if the exchange rate is fixed in P.O it will nto change
what do you mean
but for this usd purchase order ,vendor incoming rmb invoice .how can i process this please clarify
G.Ganesh Kumar

About FM 'READ EXCHANGE RATE'

Hi,
The FM 'READ_EXCHANGE_RATE' documentation says that the exchange rate valid on a date is read from table TCURR according to the currency key and the exchange rate type.
But I find that for some situations, the picked up
Exchange rate is not found in table TCURR.
In debugging I see that it reads from internal table BUFFER and not by making a SELECT query from TCURR.
Only when records are not in BUFFER it makes a SELECT query to TCURR.
My requirement is to find latest Exchange rate b/w two currencies. So I pass the current date as the Currency translation date.
Even if the value for the current date is not available in TCURR, it should pick up the latest one.
So when the FM READ_EXCHANGE_RATE is run, sometimes the BUFFER table is filled up with records having
values for the current date and these records are not found in TCURR table.
As these exchange rates sometimes are not found in TCURR for the Currency keys / Ex. rate type, can anybody please explain me the purpose of the BUFFER table and where from the Exchange rate is picked up.
Regards,
Midhun.

For the first time Buffer doesn't have any data...After selecting the data from data base the buffer will be filled up....!!! Then if you are in the same session and try to use the FM once again the value gets picked up from BUFFER internal table which is ok......
As and when you come out from the transaction/session...The Buffer will be refreshed....since it's an internal table...
Thanks
Suresh

Help me about Indexes and Exchange rate

I see in SAP B1 have form Exchange rates and Indexes. I don't know mean of Index. What does it use for? And Exchange rates relate to Indexes. I can't understand. Can you help me.

Hello Tien,
You are clever. There are also some member forums could not know how benefit the helpfiles for them and a certain member in this forum is called forum point seeker, take this as an opportunity.
Indexes in SAP B1 are used to define consumer price index (CPI). h
ere is the definition :
The Consumer Price Index (CPI) measures inflation as experienced by consumers in their day-to-day living expenses. (It is sometimes referred to as the retail price index.) There are separate indexes for two groups or populations of consumers:
The CPI for All Urban Consumers (CPI-U) is the index most often reported by the national media.
The CPI for Urban Wage Earners and Clerical Workers (CPI-W) is the index most often used for wage escalation agreements.
The CPI inflation calculator allows customers to calculate the value of current dollars in an earlier period, or to calculate the current value of dollar amounts from years ago.
Consumer price indexes often are used to escalate or adjust payments for rents, wages, alimony, child support and other obligations that may be affected by changes in the cost of living. There is a fact sheet explaining how to use the CPI for escalating contracts.
A new price index called the Chained Consumer Price Index (C-CPI-U) is now available. This new measure is designed to be a closer approximation to a "cost-of-living" index than the CPI-U or CPI-W.
Based on that definition, we could obtain it as data when determining exchange rate in daily business or price of the inventory items
Rgds,
JM

Exchange Rate Formula

Hi,
My company uses Hyperion. We have 7 different currencies across 18 markets so rolling up our numbers into a reporting currency can be complicated. After pleading with our business control team they finally explained the monthly reporting formula whereby for a given month it takes the total value in local currency to the last reported month multiplied by the average reporting currency exchange rate to that month. This is followed by the same process for the current month using the year to date ave. exchange rate and then subtracting the two to get the actual reported number (who came up with this I wonder).
Anyway, now I am looking at the year budget and the formula is not working. Looking on some forums I can see that Hyperion has 'planning' and 'target' options and I guess we are using a different formula for the budget.
Can anyone point me in the direction of these formulae so that I can do some planning in excel and avoid having to wait for business control to plug everything into Hyperion before I get a new budget number!
Thanks a million to anyone who can help.
Gavin

Hi,
I cannot say I completely understood about the method used for conversion, but it's evident that the conversion rule must be modified for it to meet the requirement. It's always better to go back to whoever built this application in the first place and ask them to make the modification. Or if you have a Planning/Essbase administrator, they should be skilled enough to apply the logic. Unfortunately changing the currency conversion rule in Planning is not a user task, therefore should be handled by an admin/developer.
Cheers,
Ap

Exchange rate differences between GR and IR

Hi Gurus,
i have a problem about a exchange rate differences beetween GR and IR. Customizing setting is done based on this logic (transaction OMRW, ERD setting = blank).
For example: Goods Receipt amount is $100 and the posting is made with exchange rate 0,8. When busy with MIRO the user change manually exchange rate from 0,8 to 1,0. Moreover, the user change item amount from $100 to $150.
When the user simulate the posting in MIRO, transaction KDM is not activated (used).
Is to be underline that if item amount is not change but it remains untouched, transaction KDM is used correctly.
The system is:
SAP ECC 6.0
Software component: SAP_APPL
Release: 600
Level: 0016
Highest support package: SAPKH60016
Short description of software component: Logistics and Accounting
Have you any ideas about the reason of this malfunction?
Many thanks already in advance.
Stefano

Hi Gurus,
i have a problem about a exchange rate differences beetween GR and IR. Customizing setting is done based on this logic (transaction OMRW, ERD setting = blank).
For example: Goods Receipt amount is $100 and the posting is made with exchange rate 0,8. When busy with MIRO the user change manually exchange rate from 0,8 to 1,0. Moreover, the user change item amount from $100 to $150.
When the user simulate the posting in MIRO, transaction KDM is not activated (used).
Is to be underline that if item amount is not change but it remains untouched, transaction KDM is used correctly.
The system is:
SAP ECC 6.0
Software component: SAP_APPL
Release: 600
Level: 0016
Highest support package: SAPKH60016
Short description of software component: Logistics and Accounting
Have you any ideas about the reason of this malfunction?
Many thanks already in advance.
Stefano

Exchange rate fields get failed when uploading data

Hi,
I have a problem when uploading purchasing data (2LIS_02_SCL) from R/3 to BW. Basically the exchange rate value is right in the PSA but NOT in the cube.
I just wondering what did they do when transfering the exchange rate data from PSA to cube. I have already checked the transfer rules and update rules, but no logic in there. So the logic should be ONLY pass the value, but somehow different value coming up.
Maybe you can have different think about this ?
FYI, I have already transfered global settings and exchange rates from R/3 to the BW. Is there any settings that I missed ?
Very appreciate of your help.
Thanks a lot
Martin Darmawi

Hi Roberto,
Thanks for your answer.
I think it has aggregation behaviour.
Do you know how I can avoid aggregation behaviour for a keyfigure ? Because I can't edit aggregation field and I tried to change the exception aggregation field with First Value, No Aggregation and Avarage value but it does not work.
Please let me know what you think.
Thanks and Appreciate for your help,
-Martin Darmawi-

Redetermine the exchange rates during the billing.

Hi
I would like to redetermine the exchange rates during the billing.
When we are creating a sales order we are maintaining exchange rate in sales order header, but in case of any change in rates
I have to change it in sales orders first and then i have to create an invoice. Instead of doing this i would like the exchange rates
to be redetermined during billing automatically.
Please help
Suresh

Hi,
Firstly let us know If you want to redetermine the pricing exchange rate or the exchange rate to accounting? I imagine that the pricing exchange rate you are talking about ,the pricing exchange rate type should definetely work no matter what the pricing source is . Normal sales cycle always has the price source as order, which controls from where and in what sequence the conditions from the reference documents are copied to the billing document. It does not control the exchange rate. Check the billing date in your sales order(its always advisable to take the service rendered date as the base to calculate the exhcange rate which is PGI date when a delivery is involved) , not the actual billed date. If you want the system to determine the exhcange rate on the date when the Invoice has been raised(Different from the billing date in the sales order) then go for the option of "E" which will take the service rendered date.
But If you want the exchange rate for accounting then you have to append a routine at the item level in "VTFL" .The Logic would be to read the exchange rate from TCURR table using the function module "READ_EXCHANGE_RATE. If you have specified the exchage rate in the header(Accouting tab) of the sales order this gets copied to the billing document This is SAP standard behaviour. To over write this you have to go for the routine ammendment as suggested above.(In case of billing dates and the exchange rates differ). Kindly please let me know If you need any more help on this.
Regards
Ram Pedarla

Issue with indirect Quotation Exchange rates...

Hi All,
I am using FM 'POSTING_INTERFACE_CLEARING' to clear the customer open items.
While posting with indirect quotation exchange rates i.e BKPF-KURSF is in negative.It is throwing below error
"The Exchange rate may not be transferred if negative".
When i check it in BKPF table the value is saved like exp: '/1.9010'. for select query it is picking like '1.9010-'
How to resolve this issue.? it is very urgent.
Thanks in Adv.
Regards,
Raj.

Hi,
I gave the OB08 entries, not sure if you wanted me to explain the logic. Here it is..
Maintain 'Indirect quotation' from Local currency(USD) to Transaction currency(CAD) and 'Direct quotation' from Transaction currency(CAD) to Local currency(USD).
Direct quotation is where the cost of one unit of foreign currency is given in units of local currency, whereas indirect quotation is where the cost of one unit of local currency is given in units of foreign currency.
Your local currency is USD:
- Direct exchange rate: 1CAD = 0.92819 USD
- Indirect exchange rate: 1USD = 1.08238 CAD
The following settings have been made in the standard system:
- Direct quotation: ' '
-   Indirect quotation: ' / '
Direct exchange rates do not have a prefix.
Your local currency is USD. You enter a business transaction in the transaction currency CAD. Until now, you had to use direct quotation to enter the exchange rate (1CAD =0.92819 USD). If you have defined '/' as the prefix for indirect quotation, you can also enter the exchange rate with indirect quotation (1 USD = 1.08238 CAD) by entering '/1.08238' in the exchange rate field.
Direct or indirect quotation can be maintained as the standard form of quotation for a certain currency pair. You use:
         - '1' for direct quotation
         - '2' for indirect quotation
If a standard form of quotation has not been specified for a currency pair, the system automatically uses direct quotation.
You make the settings in the IMG: General Settings -- Currencies -- Set Standard for Direct/Indirect Quotation per Currency Pair.
Thanks
Ganesh

SGD Exchange Rate Difference JE appears in Customer Aging Report

Dear Experts,
SAP Version: 8.81
Local Currency: SGD
We perform Exchange Rate Difference for a USD BP to calculate the unrealized gain/loss during month-end, JE created successfully.
Next, we go to Customer Aging Report and select this USD BP.
When i choose to view the Aging Report in Local Currency, the USD Invoice will appear in SGD + Exchange Rate Difference JE in SGD, the total balance can appear in SGD with no problem.
When i choose to view the Aging Report in BP Currency, the USD Invoice will appear in USD + Exchange Rate Difference JE in SGD, i can't see the total balance as it is appeared as xxxxx.
Above is the behaviour in 881.
Last time in SAP 2005, when i choose to view the Aging Report in BP Currency, the Exchange Rate Difference JE in SGD will not appear, therefore i can see the total balance in USD.
What is your opinion about the behavior in 881? Will you consider it as design or issue?
Thanks.
Regards,
Lay Chin

Dear all,
This problem is no longer there when upgrade to 881 Patch 08.
Regards,
Lay Chin

Logic about exchange rate

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