Maintenance of Exchange Rates

Currencies
In this section, you check the preset currencies add new currencies according to your requirements

Table: TCURR - Exchange Rates

Table: TCURC - Currency Codes

Table: TCURX - Decimal Places in Currencies

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Check Currency Codes
The currency table must have entries for all currencies which occur in your business transactions. Standard settings In the SAP standard recipient system, all currencies are defined according to the international ISO standard. SAP recommendation SAP recommends that you use the ISO standard for your additional entries. If your entries do not correspond to the ISO standard, you will not be able to use data exchange in international communication (e.g. bank clearing transactions). Actions 1. Check the currency entries for completeness. 2. Add the missing currency entries as required. 3. Use the ISO standard for your additional entries.

Primary SAP Currency Code for ISO Code

Selection of a currency key as the primary currency for an ISO code.

Use
You may use several SAP currency keys for the same ISO code. To ensure a unique assignment of the ISO code to an SAP currency key, one of the SAP currency keys must be selected as the primary currency key for the ISO code. If the assignment between SAP currency key and ISO code is unique, you do not need to select this field.

Define Standard Quotation for Exchange Rates (transaction:

ONOT)
For each currency pair you can define either the indirect quotation or the direct quotation as the standard quotation for the exchange rate. This setting is used for the following activities: 1. When you process the exchange rates table you can enter the exchange rate either as a direct or an indirect quotation. If the exchange rate you enter does not have the same quotation as the standard quotation set up here, the exchange rate is highlighted to show this. Check in this case that you have entered the exchange rate in the correct field. 2. An exchange rate is only taken from the exchange rates table if it has already been given by the user or another function. If this is a type of exchange rate that demands translation using a reference currency, the standard quotation is used if the direct exchange rate (cross rate) is to be determined for further processing. The direct exchange rate is provided as standard quotation. 3. In the majority of the transactions there is an input help (F4) for the exchange rate fields. This allows you, amongst other things, to calculate the exchange rate from two currency amounts entered. The result is given with the quotation set up for that currency pair. Further notes You can reduce the number of entries to be maintained by using generic currency keys. If one or both currency keys are left blank, this means that this can be used for all currencies. The standard quotation for a currency pair is determined internally as follows: 1. A search is made for entries that match the 'from' and 'to' currencies of the currency pair to be checked. 2. If no entries can be found, a search is made for entries that match just the 'to' currency and where the 'from' currency is initial. 3. If no entries can be found, a search is made for entries that match just the 'from' currency and where the 'to' currency is initial. 4. If no entries are found, a search is made for entries where both the 'from' and the 'to' currency are initial. 5. If no entries can be found, the direct quotation is taken as the standard quotation.

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The entries are sorted according to this access method and then by validity date: The system checks the entries in the given sequence (points 1 to 5) and then, on the highest level on which entries have been found, selects according to validity date. Entries with a validity date that is earlier than the translation date are ignored. From the remaining entries, the entry is taken that has the most current validity date but that is still earlier than the translation date to be checked. The date used to fetch the exchange rate from the exchange rates table, such as the posting date in the accounting document, is used as the translation date.

Quotation type for currency translation

Here, you decide whether the exchange rate for this currency pair is to be entered as from-currency to to-currency (direct quotation) or as to-currency to from-currency (indirect quotation).

Example
From-currency = CAD, To-currency = USD Direct quotation: exchange rates entered as CAD/USD. Indirect quotation: exchange rates entered as USD/CAD

Check Exchange Rate Types

Exchange rates for different purposes for the same date are defined in the system as exchange rate types (you cannot delete existing entries). 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. Example 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: Ratio for FRF -> DEM 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. Hinweis When posting and clearing documents, the system uses the exchange rate type "M" for foreign currency translation. This exchange rate type must be contained in the system. Standard settings The standard system includes the exchange rate types for the bank buying rate (G), bank selling rate (B), and average rate (M). You can have the system calculate the bank buying or selling rates from the average rate and the spread. The term spread refers to the difference between the average rate and the bank buying rate, or between the average rate and selling rate. You can find more information on this in the documentation on the activity Maintain spreads. Activities 1. Find out which exchange rate types are needed in your company. 2. Check the standard exchange rate types. Create additional exchange rate types if necessary. 3. If you want to specify that all currency translations for a rate type must be carried out using a base currency, enter a currency (such as the group currency) in the Base cur field. 4. If you want to use the base currency specified as the From-currency, select the BCurr=from field. 5. If you want to have the system calculate the buying and selling rates from the average rate and the spread, enter the rate type for the average rate in the Buy.rt.to or Sell.rt.to field. Then maintain the spreads under the activity Maintain spreads. 6. If you want to use the inverted rate for translating two currencies, select the Inv field. Note: The reversed rate is used only if you have not made an entry for the corresponding exchange rate in the activity Enter exchange rates.

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7. If you want to calculate the amounts according to the European Monetary Union's legal directives, select the EMU field. 8. If you want the system to check whether the application uses an exchange rate other than the fixed exchange rate, select the indicator in the Fixed field. This indicator must be set for the exchange rate type that is used for currency translation within the EMU.

Indicator: Calculation allowed with inverted exchange rate ? (Inv)

Indicator that in the case of a missing exchange rate entry in the system for the required translation from one currency into another, the inverted exchange rate relationship may also be used.

Example
If an entry is missing for the translation of USD into DEM in the system, then the translation takes place by means of the entry for the tranlsation of DEM into USD, providing the indicator is set.

Indicator: Exchange rate type uses special translation model (EMU)

If you set this indicator it means that the SAP System internal translation modules calculate using a different algorithm. The algorithm has been adjusted to meet the European Monetary Union statutory guidelines. The indicator must be set if the statutory conversion rules agreed by the participating countries in the EMU are to be used. This procedure is not effective if calculation is to be undertaken using bank selling rates, bank buying rates and exchange rate spreads. If you set this indicator, you must specify a reference currency.

Enter Exchange Rates

Exchange 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"). Note 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. Requirements 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 o the currency pair o the exchange rate type o the date in the step "Define the Conversion Factors for Currency Conversion" Standard settings Sample exchange rates are already stored in the standard system. Recommendation You should delete the exchange rates you do not need. Activities 1. Check whether the exchange rates you need are in the system. 2. Delete the entries you do not need.

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Direct Quoted Exchange Rate

This field contains an exchange rate according to the direct quotation method. The exchange rate gives the price in the "to" currency that you have to pay for a unit (10, 100,...) of "from" currency. If the field content is highlighted (usually in red), then you have set the indirect quotation method of exchange rate entry for that currency pair in Customizing.

Define rounding rules for currencies (OB90)

For the company code/currency combination for which payments are to be made not in the smallest denomination, but in a multiple of it, enter the currency unit (rounding unit) to which amounts are to be rounded. This ensures that the amounts in this currency are always rounded to this unit (providing the amounts you enter manually are also rounded in line with your entry). The payment program evaluates your entries to determine the cash discount and rounds off the amount accordingly. Example For Switzerland, you decide that five centimes is to be the smallest denomination for payment transactions. For Swiss company codes and the Swiss franc, you therefore enter 5 in the "Rounding unit" column. Cash discount amounts are then rounded off to this currency unit. In the case of Swiss franc amounts entered manually, that part of the amount after the decimal point must be divisible by five. Standard settings The currency unit 5 has been specified for the standard Swiss company code and for the Swiss franc currency key. Activities For the required company code/currency key combinations, specify the currency unit to which the cash discount is to be rounded.

Define Worklist for Exchange Rate Entry

Use In this process step, you create a worklist and/or define the worklists for entry and editing of exchange rates. Users receive authorization to enter exchange rates at the worklist level. It is possible for two or more users to edit two or more worklists in parallel, as the lock applies at the worklist level during editing. You can assign each combination of exchange rate type, from and to currencies to one worklist only. Activities 1. To create a new worklist, go into change mode and choose New entries. 2. Enter a worklist and a short description. You can assign a maintenance interval to the worklist (for example, every five days) and a tolerance limit. If you do not enter a tolerance limit, the system does not perform a tolerance check. 3. Save your entries. If you need to undo your changes, choose Edit -> Undo Change.

Assign Exchange Rate to the Worklist

Use In this process step, you assign exchange rates to a worklist. You can assign all exchange rates to a worklist that are to be entered at the same intervals and linked to the same authorizations. Requirements You must have created at least one worklist. For further information about creating worklists, see Define Worklist for Entering Exchange Rates Activities 1. To assign an exchange rate to a worklist, go into change mode and choose new entries. 2. Enter the exchange rate type, the from and to currency and the required worklist. 3. In the rate field, specify whether the rate is to be entered as a price or as a quantity. 4. Save your entries. You can enter the rates either directly in the productive system using transaction TCURMNT or in the Customizing system with transport recording.

Expiring Currencies

You can use these IMG activities to discontinue currencies.

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You can make settings so that the system outputs warning and/or error messages when a user attempts to create or change objects in these currencies. For example, you can use the function for currencies involved in European Monetary Union as these currencies lose their validity at the end of the dual currency phase. For longer running objects (such as sales orders) you can enter a date for a warning or error message. In this way, you can ensure that on/after the end of the dual currency phase, these objects can no longer be created/changed in the currency that is being discontinued. This function can also be used to discontinue currencies of countries where there is high inflation.

Define expiry reasons

In this IMG step you define the expiry reasons for the currencies that you want to allow to expire. Example The Austrian Schilling loses its validity at the end of the dual currency phase. You want to prevent objects in this currency being create/changed drawing up to/after the end of this dual currency phase. In this table you therefore define as expiry reason, for example: EURO - European Monetary Union You can assign this expiry reason to the participating currencies in the next IMG step.

Define expiring currencies

In this IMG step you assign the expiring currencies an expiry reason that you defined in an earlier IMG step. You also define the new new currency that is to replace the expiring currency.

Define warning and error dates

In this IMG step you can enter for each of the expiry reasons you have defined the predefined SAP object types as required, e.g. sales order. You can also enter a date for a warning and/or error message for each link between expiry reason and object type. If you enter a warning and error date for the link, take care that the warning date is earlier than the error date in case of expiring EMU participating currencies the error date is earlier or the same as the anticipated expiry date of 06.30.2002 For company code-dependent object types you can also enter the company code for which the warning and error date checks are to take place. If you do not enter a company code for a company code-dependent object type, the warning and error date checks are made for all company codes. If the object type is not company code-dependent, the system does not run the check on a company code level and you cannot restrict the check to a company code. Entering a company code for the object type concerned results in an error message. You can leave the fields for both the object type and the company code blank. This serves as a placeholder and means that the entry is valid for any object type and and company code. When creating an object of object type "OBJECT" in company code "BUKR" a check is made with the following ranking against the entries of an expiry reason: 1. If an entry for object OBJECT and company code BUKRS is found, then this is taken. 2. If this is not the case, a search is made for the object type OBJECT and empty company code. 3. If this is not found, a check is made whether an entry exists with empty object type and company code BUKRS. 4. If this also does not exist, a search is made for an entry with empty object type and empty company code is made. 5. If none of the entries 1 to 4 have been maintained, a warning or error message is issued. The entries are sorted according to this ranking automatically after saving. The entries with filled object type and company code at the top, the generic entries with empty fields at the bottom. The check is always made against the entry that "fits the best", i.e. that is the nearest to the top of the list.

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If the warning date has been reached, a warning is issued when creating or changing an object that informs you that the currency being used is expiring. The user can change the currency at this point, but he must not do so. If the error date has been reached, an error message is issued and the user is forced to enter a valid currency, if this is a dialog transaction. For non-dialog transactions the entry is corrected to the new currency without the user having to enter it manually.

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