Setting Up Parallel Currency

Hi SAP Expert,
We have issue with post implementation in regards to parallel currency.
We created Singapore Co-Code with USD currency and all the transaction happens in SGD (Singapore Dollar). The reason behind this setup is we have all our liabilities in USD and we wanted to avoid any FX gain or loss hitting our P&L.
Now the client wanted to view both currencies report and transactions. e.g. USD and SGD.
FYI the 1st local currency was setup as Co-code currency (10) which is USD and 2nd local currency was setup as (30) Group currency which is USD too.
Which will be the best way to handle or setup the SGD currency? We have activated Flex-GL in our ECC 6.0. Can we handle this through flex gl?
Any suggestions and guide?
Mano

Hi Perumal,
Is the transaction currency always SGD or will it include other currencies as well?
If you dont have any other transaction currency other than SGD. Then you can always create a custom report to give the details in both currencies.
If you have transaction currencies other than SGD then there is no way you will be in position see the details in both the currencies,unless you convert the USD balances to SGD based on business rules which is really very complicated .
We have situations similar to you , but handle the same by creating a custom report in transaction currency.
Hope this helps.
The best way is to define SGD as local currency and USD as Group currency how ever you indicated teh client dont want to do it that way. If the client dont want to do thing in a staright way then custome report is the only way.
Sekar

Similar Messages

Currency revaluation in Parallel Currency

Hi,
Having set up parallel currency (currency type 40) in FI and FI-AA. Local Currency is CNY; Parallel Currency is USD.
As soon as a time lag exists between two activities i.e. incurring costs in January - settlement and capitalize costs in March a different translation rate is applied to CNY/USD. Therefore a difference in USD incurrs.
Is there a way to revaluate parallel currency differences within standard SAP?
Is there a way to post clear this difference manually in the parallel ledger in USD without influencing the main ledger in CNY?
Technical infos: SAP ECC 6.0 without new G/L

Hi,
first of all, you cannot avoid this differences, but this is completely OK.
Of course you can revaluate in currency type 40. The posting would be then like this:
(original account to be revaluated vs. P/L gain/loss account):
Amount in doc.currency = 0 xxx
Amount in company code currency (CT 10) = 0 CNY
Amount in hard currency (CT40) = xxx USD.
So only the items / balances in CT40 are changed, no impact on CNY.
HOw to achieve this: either you run F.05 (SAPF100) for currency type 40 (recommended) or you post manually in F-05, this transaction allows you to enter the value of 0 in any amount field (at least 1 amount, in this case, CT40 USD amount, must be of course greater than zero) without converting the doc.currency and/or local currency amounts immediately.
Hope that helps, points welcome
Csaba

Parallel currencies in AA

Hi
We have requirement of using parallel currencies in one of the cocode.So I havee set up parallel currencies in AA as well.
We have three currencies EUR as Local currency, USD as Group Currency and CHF as Index-based Curremcy.
I have set up Depreciation areas
01 Book depreciation areau2014posts in real timeu2014leading ledger 0l
02 Book depreciation area for CHFu2014posts Dep only u2013Z1 european ledger
10u2014Statutory Depreciation areau2014Do not post
19u2014Derived Dep area (01-10)
29u2014Dervied dep area (01-02) Posts APC onlyu2014Z1 european leading ledger
30-Consolidated Balancesheet in local currencyu2014do not post
31u2014consolidated balance sheet in group currencyu2014do not post
32u2014Book dep in Group currency u2013do not post
I have maintained in OAYH for 2 as CHF and usd to 32 areas.
In OABT Tcode I want to assign Index based currency to area 02 but is greyed out.
And I am getting the below warning message while saving depreciation areas.
Parallel currency area (currency type 50) missing for area 01
Please help me if I have missed any settings.
Thanks
Nirmala

Try setting up the index currency (50) for depreciation 32 under Crcy type/Val view in OABT. Enter 1 under ValAd, check IdAPC, 1 under TTr and check the box under IdntTrm. If it doesn't work, try it with 29 or other depreciation areas in the exception of 01 and 02.
Regards,
Elias

Purchase price variance line item - not to be posted in Parallel currency

Hi All,
Scenario:
Transaction currency - SGD
Local Currency - INR
Parallel Currency 1 (LC2) - Group currency - USD
Parallel Currency 2 (LC3) - Global Company currency - INR
Import PO - MIGO - MIRO
PO is raised in foreign currency.
Material master price control is maintained in 'S'.
While doing MIGO, I am getting following accounting entries:
Stock a/c Dr.
GR/IR a/c Cr.
Price variance* a/c Dr.
*The price varaince is because of difference in my material price as per material master and PO.
If I go and check in FBL3N, I can see all the line items in Transaction, Local currency and 2 Parallel currencies.
My query is, In SAP is it possible to avoid Price variance line item posting to Parallel currencies.
To my knowledge I know that it is not possible to avoid a single line to post it to Parallel currencies.
Thanks in advance.

This is the answer from OSS
Dear Customer,
the system works as designed.
When Material Ledger is activated, price differences are always
generated under the circumstances you have described. The reason is
that when material ledger is activated, price differences must not be
included into the stock changes value, otherwise the system would
not be able to calculate an actual price.
When Material Ledger is activated, the customizing setting
for handling price differences in the subcontracting process has no
effect.
Best regards,
Santiago Lorite
AGS Primary Support, Business Suite & Technology u2013 Logistics

Tolerance exceeded due to translation difference in parallel currency.

Hi,
I am getting the following error when transaction: ASKB -
Tolerance exceeded for differences due to currency translation
Message no. AAPO518
Diagnosis
An error occurred during translation of currency amounts into the parallel currency using currency type 40.
The document balance is 3605.07 MRL and it cannot be corrected automatically.
System Response
The document cannot be created
Please help to understand and solve the error.

Hi,
It could be that you need a derived depr. area activated as
"Derived depreciation area as real area"
Documentation:
Treat Derived Depreciation Area As Real Area
Specifies that a depreciation area that was originally defined as a
derived depreciation area is treated as a real depreciation area in
the target company code. This means that not only depreciation
differences can be posted to special depreciation reserve accounts,
but also real differences in acquisition and production costs can be
posted to balance sheet accounts.
Use
If you set this indicator, then the system posts the real difference
between two depreciation areas, if the original depreciation area was
defined as the difference between two other areas (for example,
special depreciation area 03 defined as the difference between areas
01 and 02). If the source depreciation area is not a derived
depreciation area, then the system removes the indicator during the
input check.
Please take into account that after this change on customizing,
the accounts in the account determination for this depreciation
area have to be maintained for APC accounts also.
In another scenario the reason for error AAPO518 was the use of a
non standard schema. May you check if you are using a modificatin to the
schema: for example you can check this in transaction SM43 ->
ie SM34 -> VC_T093H01. Check the transaction and to which schema
it is linked.
Best Regards,
Blaz

Parallel Currency Depreciation Areas.

Hi,
I have activated parallel currencies (Hard Currency - EUR & Indexed Based - USD) concept to my company code. I am trying to settle WBS, that time I am getting error message "Company code XXXX manages parallel currencies in Asset Accounting. For each area that posts automatically online to FI, you have to define one dependent depreciation area that adopts both identical values and depreciation terms from depreciation area 01, and which is assigned to currency type 40 and currency EUR. There is no depreciation area of this type defined for depreciation area 01"
For the above error how to create dependent depreciation area and attaching to currency type EUR".
Help is needed very urgent.
Thanks in advance for the same.
Regards.

Hi,
Normally when you activated parallel currencies, then you should have minimum 2 depreciation area. First is Book Depreciation , and the second is "Group Currency" Depreciation.
You can define depreciation Area for "Group Currency" in :
SPRO -> Asset Accounting -> Valuation -> Define Depreciation Area
Then you should Specify Area Type in t-code : OADC. Set "Typ"= 6 (group Valuation) for the "Group Currency" depreciation area.
Then Specify Transfer of APC Values in t-code : OABC , fill "ValAd"= 01 and tick column "Identical" for "Group Currency" Area.
Do the same thing in t-code : OABD.
Then You should define currency for those depreciation area in t-code : OAYH.
Last, you should Specify the use of parallel currencies in :
SPRO=> Asset Accounting -> Valuation -> Currency ->Specify the use of parallel currencies .
For "Group Currency" Depreciation area , Fill following :
"Currency Type" = 30 Group Currency
Tick "IdAPC"
"Ttr" = 1 book depreciation
Tick "Indnt Trn"
Hope It can help.

Activation of Parallel currency while upgradation of ECC6.0

Hi Experts,
We are useing SAP 4.7E Version along with IS OIL . SAP went Live on 01.04.2006 . Company code currency is INR . *We have not activated Parallel Currencies i.e Hard Currency or Indexed Currency .*
1. Is it possible activation of parallel currency while upgradation to ECC6.0
2. If activated , what are the complications of clearing the Past documents
Best Regards,
Lakshman

Dear,
Use transaction OY01, where going in to your country there is a field Hard Currency. Put currency here which you want it to be the hard currency.
This is customizing object which will not allow you to make changes in production instance as NO CHANGES ALLOWED is set for the client in SCC4. Better do this in development and transport it to production.
Regards,
Chintan Joshi.

Exchange rates with two parallel currencies

Hi all,
I need to manage a company with two parallel currencies (USD and PKR). To post a document in USD it's necessary to define in TCURR an exchange rate FROM USD to PKR, and to post a document in PKR it's necessary to have an entry FROM PKR to USD.
Obviously the second exchange rate has to be the multiplicative inverse of the first one.
For this reason, to avoid redundant and possibly wrong entries, is it possible to manage only one exchange rate in TCURR (for example FROM USD to PKR) instead of two? How?
Thanks for your attention

Go to SAP Netweaver> General Settings> Currencies and manipulate the following and you should be able to maintain only one set of exchange rates.
i) go to Check Exchange Rate Type - and manipulate the exchange rate type you are using (Check Financial Accounting Basic settings> Ledgers> Define Currencies for Leading Ledger to check the exchange rate type used for each company code - generally M is used) and assign Reference Currency "Ref.crcy" (for example we use USD) for that exchange rate type.
ii) go to Define Stnadrd Quotation for Exchange Rates and maintain - Forexample we use "Blank" to "USD", so that we just have to maintain Other currencies to USD (ref.crcy) and in In-direct Quotation.
These setting would give you the ability to maintain just "Other Currencies" to "USD" in in-direct quotaion. Use this example to decide which currency you want to use as reference currency and then maintain accordingly.
Hope this helps.

Copy parallel currency depreciation area

Hi Gurus,
We are migrating to New GL. As a part of this, I am creating 4 new depreciation areas (one for LC1 in non-leading ledger - 61, One for LC2 (GC) in non-leading ledger - 71 and the other two for delta between 01 - 61, and 31-71). I have marked 71 depreciation area as identical and adopting values from 61. I want to copy the values from the existing group currency depreciation area(31) into 71 as I want 71 to be a replica of 31 and I do not want the system to again convert the LC1 into GC using historical rates and I want to avoid writing an LSMW as they are lots of assets. Can someone advice how I can copy over dep area 31 to 71 using AFBN. System does not allow 71 to reference 31 in OABC for take over of same values. Thanks.

Hi,
For a correct and simple parallel valuation scenario, please review SAP Note 1433535 which provides the necessary instruction how to create a ledger scenario, including parallel currency areas.
(For posting indicators and their meaning you can check KBA 1572318).
Please verify in your system and take into account the following information regarding ledger scenario logic: also, please refer to the standard ledger scenario logic documentation.
In short, this is a basic configuration of depreciation areas and posting indicators in asset transaction OADB:
                                         Posting to G/L         Ledger
Area 01 HGB                    1                             0L
Area XX IAS                     3                             1L (your ledger code)
Area YY (IAS - HGB)        6                             1L (your ledger code)
Same setup is valid for the other ledgers that you may have.
You should also beware that according to the ledger scenario logic: Acquisiton/transfer/retirement postings in area 01 go to ALL ledgers, independently of the setting in OADB (this is not an error).
The difference is posted through the derived area.
Here I list again the 3 most relevant SAP Notes listed in regard to creating a ledger scenario:
1433535    Parallel valuation: Ledger approach
1594311    Duplicate posting in non-leading ledger when APC tr
1572318    Meaning of field "Posting in G/L" in transaction OADB
Hope this helps you.
Best regards,
Brigitte

SAP FICO-parallel currencies

Hello experts,
All my currencies are set as USD in OB22 still in the GR/IR there is variance in Group crcy amt and GC/gr.val. amnt.
Please advise.
Shrirang

Hi,
We have faced similar issue in past. We have raised OSS message to SAP, in nutshell OSS team has explained following to us:-
Postings from module MM (-> logistical invoice verification, i.e. transaction MIRO, and inventory management, i.e. transaction MIGO) the amounts in local currency are calculated/determined in module MM, and the amounts in a parallel currency, i.e. second and/or third local currency, are calculated/determined in module FI.
OSS team has explained us with our problem scenario:- how local currency amount is calculated and why it is differing.
Regards,
Anand Raichura

Remove Parallel Currencies

Hi,
I am creating a new cocode and I also need to Remove the parallel currencies. Does anyone know the exact path to remove it?
Thanks,
Roger

Hi
Check your setting in SCC4 and OB22.
You will be able to remove the parallel currency.
Thanks
Ashok
Award points if this is useful

Parallel currencies - alternative to local currency changeover to euro??

I would like to know if there are any alternatives to local currency changeover to euro?
Estonia will start using euro 1 January 2011 and we are helping an estonian company investigating alternativs to the euro changeover in SAP. I know that SAP has programs that can mange the conversion/changeover, but I would like to know the alternatives.
The company uses 2 parallel currencies today. The company code currency EEK (10) is the first local currency, the group currency (SEK) is the second local currency.
Is is possible to use the functionality of parallel currencies in OB22 in this case and set the EUR as hard currency (currency type 40)? Can this be done for a company already in production? Will we be able to see profit- and loss statements and balance sheets from day 1 after we have activated the new currency. Any problems with opens items?
Are the any other alternatives?
Could one stategy be to start at new company code with EUR as company code currency? I realize we have to copy the configuration and masterdata and transfer the balaces to the new company code. What other problems do you see with this alternative?
// Lotta
Edited by: Lotta Johansson on Oct 1, 2010 1:56 PM

Hi Paul,
There is no dual currency phase, I mean not in SAP (there is a mandatory dual pricing period from july 2008 to december 2009).
As of 01.01.2009, SKK will be replaced by EUR.
The swithover can be carried out as soon as the 2008 fiscal year books closing will be done in SAP.
Hope this helps.
Ben

Managing Parallel Currencies in Parallel Ledgers

Dear colleagues,
We use all three parallel currencies for the leading ledger in our project (we deal with SAP ERP ECC 6.0 with new ledger). And now we have to get one more valuation (4-th) in order to manage accounting in averaged rate of exchange. We were going to set a non-leading ledger with proper currency/valuation. But the point is that in accordance with sap documentation we can only specify the parallel local currencies specified in the leading ledger as parallel currencies in the non-leading ledgers. Alternative currencies are not possible.
In this way Special Purpose Ledger (FI-SL) seems more probable to solve our problem. But it is said that sap is not going to support FI-SL at some time in the future. Perhaps, you faced up a similar problem or you have some experience in this way or any idea will be much appreciate.
Thank you in advance,
Elena

Hi Elena,
It is possible in the future that the don't support FI-SL, but in 98 the say the same about BA that you have to use profit center accounting for the same reason that they don't want to support thisi in the futer (it is still there), the same is with CO-PA that this will be replaced in BW. But there a lot of (large) customers who are using this.
When SAP don't support FI-SL) longer then have to give an other solution. Perhaps BW? (transfer your data to BW and recalulated it there based on exchange rate). You can use this as option to!!!!!
Think about the concept R3 is only for tranaction data and BW for reporting
Paul

How to delete the parallel currency of Company code

Hi,
I am facing some problem with parallel currency.now i need to delete the parallel currency.
kindly tell me the process to delete the parallel currency in the company code.
Thanks
Kishore

Additional currencies' assignment to company codes can be changed using transaction OB22.

Issue with Asset Managemenet (parallel Currencies)

This message is from my customer:
Capital investments are kept in Asset Managemenet (FI-AA), balances are integrated part of FI-GL, shown on respective accounts.
Within AM, multiple valuation areas exists, as an asset underly different rules, depending of it's accounting (book) value and tax value etc.
Therefore, we have one area (01) representing the book value, - which is also the GL-balance. In addition, AM keep another area (10) representing the tax value.
Finally, we have a third area representing the difference between Tax and book, (called 'delta'), and these values are posted to GL as 'more/less depreciation', enabling us to report both 'Accounting books' and 'Norwegian tax books'. This 'delta posting' is part of standard, monthly depreciation run.
We have a challenge in the case were we have USD as functional currency, in an entity registrated as Norwegian a/s.
Norwegian tax authorities require the tax values of the depreciation to be based on historical NOK-investments. Both FI-GL and FI-AA support the parallel currency
accounting, but not when it comes to the handling of the 'delta-values'. In this case, the initial investments are kept in histotical NOK in AM, and in AM the NOK-investment is depreciatied in the tax area. However, when the delta-posting is done, this is done in USD only (based on area 01 and 10), and the parallel NOK-value of this transaction is translated based on exchange rate on transaction date, NOT the historical NOK-value. The consequense of this is that the tax-books in NOK is incorrect, and there is a need to do manual adjustments, based on tiresome spreadsheet calculations.
Now: is this the only way SAP handles parallel currencies in AA/AM? No way to configure it to use historical exchange rates at all?
If this cannot be changed within SAP, has anyone else solved this kind of problem and might help me getting started?

Hello!
Does someone have answers to this:
From SAP Help:
The central procurement and processing of data for an asset takes place
in the logical database ADA in the FI-AA component. One of the functions
that is carried out in the database is currency translation. Currency
translation for a currency that is different from the company code
currency is carried out according to a translation method that you
define in FI-AA Customizing.
Where do i find this customising?
If the parameters of this standard translation method do not meet your
needs, you can define your own individual translation method using this
SAP enhancement.
Activities
Follow the procedure outlined below:
<b>
1. Activate enhancement project AMGS_001.
2. Modify function module EXIT_SAPLAMGS_001. Enter your own code in the
    included program ZXBADU03.
    When the enhancement project is active, the system uses the function
     module at the corresponding positions in the logical database.
3. Define a translation method in FI-AA Customizing (Information
      System) that uses translation date 3 (own translation).
</b>
Parameters
The following transfer parameters are available for function module
EXIT_SAPLAMGS_001:
o   I_AMOUNT (amount in local currency)
o   I_ANLAV (master data for the asset)
o   I_AFABER (depreciation area)
o   I_BERDATUM (report date)
o   I_UMVAR (translation method)
The translated amount is expected as a return value in the field
E_AMOUNT. This value is then transferred to the respective report.
This looks promissing But has anyone tried this exit, EXIT_SAPLAMGS_001?
Will it work for me?
-Helge-

Setting Up Parallel Currency

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