BPC 10.0 Currency Translation

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In corporations it is quite common to find multicurrency financial models where a large portion of the data is already in the desired reporting currency. For example, a US based company may have facilities located in Germany and Canada which requires data to be loaded in their local currencies for internal reporting purposes. However, for management and external reporting purposes financial statements are prepared only in US Dollars (the reporting currency).

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BPC 10.0 Currency Translation

  1. 1. BPC 10.0 Currency Translation Author: Surya Padhi Mail : Surya@SuryaPadhi.Com. SAP Certified Application Associate - Financial Accounting SAP Certified Application Associate - SAP BusinessObjects Planning and Consolidation 10.0 Disclaimer: This document contains only intended strategies, developments, and functionalities of the SAP product and is not intended to be binding upon SAP to any particular course of business, product strategy, and/or development. SAP and author assume no responsibility for errors or omissions in this document. This preview is provided without a warranty of any kind, either express or implied, including but not limited to the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. SAP and author have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials.
  2. 2. Course Objectives • To know; • Why we need currency translation? • Ways to Run Currency Translation. • Configuration steps and pre-requisites. • How to run currency translation in reporting currency mode? www.suryapadhi.com surya@suryapadhi.com
  3. 3. Why we need currency conversion? In corporations it is quite common to find multicurrency financial models where a large portion of the data is already in the desired reporting currency. For example, a US based company may have facilities located in Germany and Canada which requires data to be loaded in their local currencies for internal reporting purposes. However, for management and external reporting purposes financial statements are prepared only in US Dollars (the reporting currency). Ex. Planning at US01, US01 need conversion of planning data CAD, INR and GBP to USD USD CA01 CAD IN01 INR GB01 GBP Local Currency www.suryapadhi.com surya@suryapadhi.com
  4. 4. Ways to Run Currency Translation. SAP Business Planning and Consolidation provides standard support for multicurrency translation and reporting. The default configuration expects all data to be loaded in the local currency (LC) and then translated into one or more common reporting currencies. We use currency translation functionality in BPC planning and Consolidation. Currency Translation Reporting Currency Mode Default Logic www.suryapadhi.com Data Manager Group Currency Mode Consolidation Monitor surya@suryapadhi.com Data Manager
  5. 5. Implementation Steps Implementation and Business Process Steps ( Reporting Currency Mode) Through Data Manager – Administrator 1. Create Dimensions. 2. Create Models and assign Dimensions to Models. 3. Create Business Rules. 4. Create script logics. 5. Configure data manager package. Through Data Manager – Business Process Owner: 1. Maintain Dimensions. 2. Create input schedule for rate model and load currency rates. 3. Create input schedule for Financial Data model and load data. 4. Execute currency conversion process through data manager. www.suryapadhi.com Through Default Script LogicsAdministrator 1. Create Dimensions. 2. Create Models and assign Dimensions to Models. 3. Create Business Rules. 4. Create script logics . 5. Include FX Script Logic in Default. LGF Through Default Script LogicsProcess Owner 1. Maintain Dimensions. 2. Create input schedule for rate model and load currency rates. 3. Create input schedule for Financial Data model and load data. 4. Refresh Data. surya@suryapadhi.com
  6. 6. Implementation Steps Implementation and Business Process Steps ( Group Mode) Through Data Manager – Administrator 1. Create Dimensions. 2. Create Models and assign Dimensions to Models. 3. Create Business Rules. 4. Create script logics. 5. Configure data manager package. Through Data Manager – Business Process Owner: 1. Maintain Dimensions. 2. Create input schedule for rate model and load currency rates. 3. Create input schedule for consolidation model and load data. 4. Execute currency conversion process through data manager. www.suryapadhi.com Through Consolidation MonitorAdministrator 1. Create Dimensions. 2. Create Models and assign Dimensions to Models. 3. Create Business Rules. Through Consolidation MonitorProcess Owner 1. Maintain Dimensions. 2. Create input schedule for rate model and load currency rates. 3. Create input schedule for consolidation model and load data. 4. Execute currency conversion process through Consolidation Monitor. surya@suryapadhi.com
  7. 7. Implementation Step 1 : Dimensions 1. Create Dimensions • • ( Minimum Dimension requirement) + Data Tracking Our BPC environment must meet following pre-requisites for currency translation to work. • Currency type dimension in rate model stores the reporting and input currencies. • CURRENCY property in entity type dimension of reporting model defines local currency ( LC) for legal entities. • RATETYPE property of account dimension should contain allocable rate type for example CLO, AVG etc. www.suryapadhi.com surya@suryapadhi.com
  8. 8. Implementation Step 1 : Dimensions Model Dimensions Type SNP_RATE ( Rate Model, a Category Type non-reporting Model) Time Type Account Type Entity Type Currency Type SNP_FINANCE (Reporting Account Type Model ) Category Type Entity Type Currency Type Time Type SubTotal Type Audit Type www.suryapadhi.com Dimension Name SNP_CATEGORY SNP_TIME SNP_R_ACCT SNP_R_ENT SNP_INPUTCUR SNP_ACCOUNT SNP_CATEGORY SNP_ENTITY SNP_RPTCUR SNP_TIME SNP_FLOW SNP_AUDIT surya@suryapadhi.com
  9. 9. Implementation Step 2 : Models 2. Create Models and assign Dimensions to Models ( Financial Model). In this step, we will create a model called SNP_FINANCE with following dimensions. SNP_FINANCE is a reporting type model, which records transactions in local currency and reporting currency. This model refers to model SNP_RATE for exchange rate. SNP_FINANCE (Reporting Account Type Model ) Category Type Entity Type Currency Type Time Type SubTotal Type Audit Type www.suryapadhi.com SNP_ACCOUNT SNP_CATEGORY SNP_ENTITY SNP_RPTCUR SNP_TIME SNP_FLOW SNP_AUDIT surya@suryapadhi.com
  10. 10. Implementation Step 2 : Models 2. Create Models and assign Dimensions to Models ( Financial Model). www.suryapadhi.com surya@suryapadhi.com
  11. 11. Implementation Step 2 : Models 2. Create Models and assign Dimensions to Models (Rate Model). In this step, we will create SNP_RATE model with following dimensions. A RATE model is a supporting mode for financial and consolidation reporting Model. It is used to store exchange rates that support currency conversion in financial model. The TIME dimension must be identical to the dimension used by the model using the rate model to store their foreign currency exchange rates and must have the same category member IDs. This model must include a currency dimension detailing the exchange rates by each input currency. The currency dimension in a rate model does not need to have the REPORTING property. SNP_RATE ( Rate Model, a Category Type non-reporting Model) Time Type Account Type Entity Type Currency Type www.suryapadhi.com SNP_CATEGORY SNP_TIME SNP_R_ACCT SNP_R_ENT SNP_INPUTCUR surya@suryapadhi.com
  12. 12. Implementation Step 2 : Models 2. Create Models and assign Dimensions to Models ( Rate Model). www.suryapadhi.com surya@suryapadhi.com
  13. 13. Implementation Step 3 : Business Rule 3. Create Business Rules. The first step for business rule creation is adding business rule to model. From the admin page navigate to Rules > Business Rules > SAPCUST_FINA (Our Reporting Model) and click on Add/Remove Rule Type. Choose Currency Translation and say “OK” www.suryapadhi.com surya@suryapadhi.com
  14. 14. Implementation Step 3 : Business Rule 3. Create Business Rules. www.suryapadhi.com surya@suryapadhi.com
  15. 15. Implementation Step 3 : Business Rule 3. Create Business Rules. www.suryapadhi.com surya@suryapadhi.com
  16. 16. Implementation Step 4 : Script 4. Create script logics. Script Logic – enables calculations on base-level cells that result in data stored within an application. Script Logic can be broken down into 3 components: • Scoping- What am I running the data on? • Body/Code – What do I want to do with the scoped records? • Writing the record Now we have choice, how to run FC? Data Manager Package www.suryapadhi.com Default Logic.LGF surya@suryapadhi.com
  17. 17. Implementation Step 4 : Script Which one is the better option i.e. running the script in batch mode or real time? We can determine the best option based on business needs , dependencies and system resources etc. Running currency translation in batch mode is advisable in following cases • After data imports • Run after rate updates • As part of a standard consolidation cycle, once data for all reporting units has been submitted and validated. Executing currency translation on a real time basis may be applicable when we need to report on multiple currencies right after a data import. www.suryapadhi.com surya@suryapadhi.com
  18. 18. Implementation Step 4 : Script Do we need to use translation logic script for every processes? We need logic script in Data Manager and Default logic scenarios. Below table shows when we need translation script logics. When How Use Script Used in Logics? In Batch Mode: Consolidation Monitor No BPC Consolidation. Data Manager Yes BPC Planning Consolidation. Default Logic Yes BPC Planning Real Time www.suryapadhi.com surya@suryapadhi.com & BPC
  19. 19. Implementation Step 5(a) : Default Logoc 5. Include FX Script Logic in Default. LGF To calculate the foreign exchange in fly; we need to include the FXTRANS.LGF files in the default logic. System executes default logic on every writeback . www.suryapadhi.com surya@suryapadhi.com
  20. 20. Implementation Step 5(b) : DM 5. Configure data manager package Data Manager is a Business Planning and Consolidation (BPC) module that helps us calculate, translate, move data in and out of BPC. By default, there are three types of packages that have been added to Data Manager: • Data Management • Financial Processes • System Administration Data manager package uses SAP delivered or custom process chain. SAP BOPC comes with pre-delivered currency translation process chain /CPMB/FX_RESTATEMENT. www.suryapadhi.com surya@suryapadhi.com
  21. 21. Business Process Step 1: Maintain Dim. Dimension maintenance is just like master data maintenance in any other application. Before proceeding further with transactional data , it is good idea to revisit dimensions and its properties. Following are perquisites for currency translation in BOPC with respect to. 1. Currency type dimension: stores the reporting and input currencies for your organization. 2. CURRENCY property in your Entity type dimension: defines the local (functional) reporting currency of the input/submitted values for the entity member. 3. RATETYPE property in your Account dimension: determines the rate and logic to be used in translation of the given account (average, end of month, or none). www.suryapadhi.com surya@suryapadhi.com
  22. 22. Business Process Step 2: Input Form Rate • Model : SNP_RATE This is a rate input form used to maintain various translation rate in SAP BOPC. Before entering transactional data in finance mode which ensures that we have maintained exchange rate for given set of dimensions. www.suryapadhi.com surya@suryapadhi.com
  23. 23. Business Process Step 3: Input Form Fin. • Model : SNP_FINANCE This is a rate input form used to enter financial data in SAP BOPC in local currency. Based on default logic configuration either system will convert local currency into USD either on FLY or on batch processing. www.suryapadhi.com surya@suryapadhi.com
  24. 24. Business Process Step 3: Input Form Fin. • Model : SNP_FINANCE This is an example of currency translation scenario where we have included currency translation screen into default logic. Once the data are writtenback, system will come up with equivalent USD vales. www.suryapadhi.com surya@suryapadhi.com
  25. 25. Business Process Step 3: Input Form This is an example of currency translation through data manager package. To disable the currency translation on fly, we have disable FXTRANS.LGF in default logic. Added to new transactions i.e. Third Party Sales and AR. www.suryapadhi.com surya@suryapadhi.com
  26. 26. Business Process Step 4: Run DM We need to run data manager from EPM add in. Data manager selection screen. Data Manager log www.suryapadhi.com surya@suryapadhi.com
  27. 27. Business Process Step 5: Refresh In.Form After successful run of data manager package, we can refresh our input form to see the currency translation result. Third Party Sales and Account Receivable transactions are translated in USD. www.suryapadhi.com surya@suryapadhi.com
  28. 28. Few of Contributions. My Publications SAP Press Publications • Explore the Payment Currency Option in Accounts Payable Other White Papers • Lock Box • Credit Card functionality in SAP Contact information: • www.SuryaPadhi.Com • Mail: surya@suryapadhi.com www.suryapadhi.com surya@suryapadhi.com

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