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SAP FINANCIALS –FOREIGN CURRENCY TRANSACTION FOREIGN CURRENCY IN DETAIL – VERSION SAP ECC6.0Prepared By:                  ...
Foreign Currency TransactionsThere are Three types of exchange rates defined by step:   Bank Buying Rate Exports Purpose ...
Check Exchange rate types:Path: SPRO ⇒ SAP Net weaver⇒ General Settings ⇒ Currencies ⇒ Check Exchange ratetypesMake sure t...
Click on “Y”Then click on “New Entries”     Configure as shown above for G, B and M     Click on “Save”Enter Exchange Ra...
Path: SPRO ⇒ SAP Net weaver⇒ General Settings ⇒ Currencies ⇒ Enter Exchange RatesEnter Exchange Rates as shown above and t...
Post one Expenditure Document: (Payroll Posting) under F-02,                    Copy Rights © 2012-2013 SAPTAC Bangalore
Copy Rights © 2012-2013 SAPTAC Bangalore
Click on Document⇒ Simulate                   Copy Rights © 2012-2013 SAPTAC Bangalore
Document Currency is in USDClick on “Display Currency”    Currency: 55,00 is automatically taken from Forex Table    Bal...
  Enter Exchange Rate    Press “Enter”We will get a warning message as below,     Press “Enter”                      Co...
Enter,Click on Document⇒ Simulate                   Copy Rights © 2012-2013 SAPTAC Bangalore
Document Currency is in USDClick on “Display Currency”     Currency: 54,90 is Manually posted     Balance is showing in ...
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SAP FINANCIALS-FOREIGN CURRENCY TRANSACTIONS

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This document relates to SAP Financials - Foreign Currency Transaction Step by Step procedure in detail.

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  • Hello, This doc has got the steps on how to post FC transactions. It would be good, if Valuations steps are added.
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  • ı agree with navin reddy
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  • Great Job! and thank you for sharing it.
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  • Would you be kind enough to send this document to me - ceecilj@yahoo.com.They are good and you have done a great job young lady.
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  • Pramila,
    I would really appreciate if you could send me your docs in Save version.
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SAP FINANCIALS-FOREIGN CURRENCY TRANSACTIONS

  1. 1. SAP FINANCIALS –FOREIGN CURRENCY TRANSACTION FOREIGN CURRENCY IN DETAIL – VERSION SAP ECC6.0Prepared By: Ms.Pramila Nagaraj First Class MBA Finance Graduate (2009-10) Global Academy of Technology, Bangalore (VTU- Belgaum)Trained up in SAP FICO @ SAPPHIRE Consulting Services and @ SAPTAC Bangalore (FRESHER) Copy Rights © 2012-2013 SAPTAC BANGALORE
  2. 2. Foreign Currency TransactionsThere are Three types of exchange rates defined by step:  Bank Buying Rate Exports Purpose ⇒G Type  Bank Selling Rate Imports/Expenditure ⇒B Type  Average Rate MM/SD Users only ⇒M TypeWhen posting and clearing documents, the system uses the exchange rate type “M” for foreigncurrency translation. This exchange rate type must be contained in the system.Steps:⇒ Find out which exchange rate types are needed in your company.⇒ Check the standard exchange rate types. Create additional exchange rate types if necessary.⇒ If you want to specify that all currency translations for a rate type must be carried out using abase currency, enter a currency (such as the group currency) in the Base cur field.⇒ If you want to use the base currency specified as the From-currency, selectthe BCurr=from field.⇒ If you want to have the system calculates the buying and selling rates from the average rateand the spread, enters the rate type for the average rate in the Buy.rt.to or Sell.rt.to field. Thenmaintain the spreads under the activity Maintain spreads.⇒ 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 correspondingexchange rate in the activity Enter exchange rates.⇒ If you want to calculate the amounts according to the European Monetary Union’s legaldirectives, select the EMU field.⇒ If you want the system to check whether the application uses an exchange rate other than thefixed 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 withinthe EMU.Exchange rate difference can be defined as the amount arising where a foreign currencyamount is translated at different exchange rates.Here, we can define for each company code, a maximum difference between exchange ratesfor postings in foreign currency.For this, we mention that how much the exchange rate entered manually in the documentheader may differ in terms of percentage (%) from the one stored in the system.If an exchange rate or the local and the foreign currency amount were entered manually duringdocument entry, then a comparison is made with the exchange rates stored in the system. If anydeviation occurs and it exceeds the percentage rate specified here, then a warning appears. Copy Rights © 2012-2013 SAPTAC Bangalore
  3. 3. Check Exchange rate types:Path: SPRO ⇒ SAP Net weaver⇒ General Settings ⇒ Currencies ⇒ Check Exchange ratetypesMake sure the B, G & M are defined under Check exchange Rate types.Define Translation Ratios for Currency Translation:⇒ Once we follow one conversion Factor, follow continuously for all the years, don’t change inbetween, it gives wrong results.⇒ Conversion factors are given at Client level but not at Company code levelPath: SPRO ⇒ SAP Net weaver⇒ General Settings ⇒ Currencies ⇒Define TranslationRatios for Currency TranslationRead the following Warning message, Copy Rights © 2012-2013 SAPTAC Bangalore
  4. 4. Click on “Y”Then click on “New Entries”  Configure as shown above for G, B and M  Click on “Save”Enter Exchange Rates:This is called Forex table. We can enter Foreign Exchange rates Daily, Weekly, Monthly, foreach type we can enter only one rate in a day.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 accountsThe system uses the type M exchange rates for foreign currency translation when posting andclearing documents in the activity Enter Exchange Rate. An entry must exist in the system forthis exchange rate type. The exchange rates apply to all company codes. Copy Rights © 2012-2013 SAPTAC Bangalore
  5. 5. Path: SPRO ⇒ SAP Net weaver⇒ General Settings ⇒ Currencies ⇒ Enter Exchange RatesEnter Exchange Rates as shown above and then click on “SAVE”Foreign Currency postings for End User area:⇒ When exchange rate is not entered at the time of posting the Document.⇒ When exchange rate is entered at the time of posting the Document.1. When exchange rate is not entered at the time of posting the Document:  It takes rate from Forex Table.  It takes the latest date rate.Eg: on 15.03.2013 Rate is 54.40 INROn 22.03.2013 Rate is 55.60 INRIf we want to enter document on 20.03.13, system will take the rate of 54.40/INR not 55.60/INR  Enter default Exchange rate type based on Document Type.Doc.Type Nature of Doc Type of Ex Rate B Bank SellingSA General Ledger Posting Rate FI Purchase InvoiceKR posting B MM Purchase InvoiceRE posting B G Bank BuyingDR FI Sale invoice posting RateRV SD Sale invoice posting GNote: If we do not specify system will take average rate type ”M” Copy Rights © 2012-2013 SAPTAC Bangalore
  6. 6. Post one Expenditure Document: (Payroll Posting) under F-02, Copy Rights © 2012-2013 SAPTAC Bangalore
  7. 7. Copy Rights © 2012-2013 SAPTAC Bangalore
  8. 8. Click on Document⇒ Simulate Copy Rights © 2012-2013 SAPTAC Bangalore
  9. 9. Document Currency is in USDClick on “Display Currency”  Currency: 55,00 is automatically taken from Forex Table  Balance is showing in INR after clicking on “Display Currency”  Click on “Save”2. When exchange rate is entered at the time of posting the Document:Post one Expenditure Document: (Payroll Posting) under F-02, Copy Rights © 2012-2013 SAPTAC Bangalore
  10. 10.  Enter Exchange Rate  Press “Enter”We will get a warning message as below,  Press “Enter” Copy Rights © 2012-2013 SAPTAC Bangalore
  11. 11. Enter,Click on Document⇒ Simulate Copy Rights © 2012-2013 SAPTAC Bangalore
  12. 12. Document Currency is in USDClick on “Display Currency”  Currency: 54,90 is Manually posted  Balance is showing in INR after clicking on “Display Currency”  Click on “Save” Copy Rights © 2012-2013 SAPTAC Bangalore

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