In SAP, Foreign exchange rate calculation is a closing activity. We can maintain local currency and additional currencies in SAP configuration. Usually exchange rate configuration is required, when the company is having business transactions in various currencies. Exchange rate is a way to calculate the differences between local currency and transaction currency.
There are different types of exchange rates between various types of currencies, like indirect quotation and direct quotation through bank selling rate, bank buying rate and average rate. We have different types of exchange rate between local currency and transaction currency. Exchange rates can calculate between two currencies other than local currency.
The exchange rate can use for the functions like; valuation, conversion, currency translation. There are standard quotations to calculate exchange rates such as direct and indirect quotation. We can also maintain our own currency pair for the calculation using transaction code ONOT.
In Exchange rate we can maintain ‘Currency conversion rate’. Through this configuration, we can calculate the loss/gain from the currency exchanges.
Buying Rate – G
Selling Rate – B
Average Rate – M
We can also maintain ratios between two currencies
Currency exchange rate mentioned in OB08
We can delete and restore exchange rates which are not in use. Using transaction OB08 we can maintain ‘Currency Exchange Rate’ table. In this table, loss/gain from exchange rate between currencies is calculated automatically. Exchange rate differences appear at the time of transaction and Loss/Gain from exchange rate also posted automatically to the respective account.
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By Manish Agarwal (on behalf of SAP Consulting Team)
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