FOREIGN CURRENCY TRANSACTIONS IN SAP FICO

FOREIGN CURRENCY TRANSACTIONS:

There are 3 types of Exchange Rates defined by SAP

Type                                                          Purpsose              Type Defined by SAP

1 Bank Buying Rate                             Exports Purpose          G Type

2 Bank Selling                                     RateImports/ Exp         B Type

3 Average Rate                                  MM / SD users only       M Type

PATH:    SPRO---->Sap Net Weaver---->General Settings--->Currencies--->Check Exchange Rate Types    

Select Position Button

Exchange Rate Type                       B               →    ENTER

We will get the details of Exchange Rate Type B

Define Translation Ratios for Currency Translation:

Here we give Conversion Factors for 2 Currencies

Foreign Currency                        INR                JPY   →Japanees Yen

                                                                       GBP   →Great Britan Pound

US$ 1        :                                 1                  ITL     →Italian Leera

JPY 100     :                                 1

EUR 1        :                                 1                   We can give in SAP Like below

GBP 1        :                                 1                  JPY                      INR    Rate

ITL 1000     :                                 1                   100 ==                   1       35            ( OR)

                                                                                                                      1 ==                     0.01        0.35

Once we follow one Conversion Factor , follow contineously for all the years. Don’t Change in between. If we change in between, it gives wrong Results.

Conversion Factors are given at Client Level but not at Company Code Level.

PATH:    Same as above                                    

ignore the warning message and press Yes.

Select New Entries Button

Ex. Rate   From          To              Valid                               Ratio

Type                                           From                     From          :            To

G              US$           INR            01.07.09                     1 :         1

B              US$           INR            01.07.09                     1 :         1

M              US$           INR            01.07.09                     1 :         1                 

→     Save

Create Request Button

Short Description:      Foreign Exchange Customization for PSL

ENTER 2 times to save in  your request.

Enter Exchange Rates: This is called Forex Table.  We can enter Foreign Exchange

Rates Daily, Weekly, Monthly. For Each Type we can enter only one rate in a day.

PATH:    Same Path as above ( Next Step to last Path)

Ex.Rate    Valid          Indirect       From            Direct        To

Type         From          Quot                              Quot

G              10.07.09                      US$                  49.40     INR

B              10.07.09                      US$                  49.50     INR

M              10.07.09                      US$                  49.42     INR   

→             ENTER

SAVE and press Enter to save in your request. Indirect Quot is for INR to US$ Rate .

Exchange Rate Entry at End User Area (S_BCE_68000174)

PATH: Accounting ---->Financial Accounting---->General Ledger---->Environment---->
Current Settings--->Enter Translation Rates

Select Positon Button

Ex.Rate Tyep               G

From Currency             US$

To Currency                 INR

Valid From                  10.07.09       →              ENTER

Foreign Currency Postings : There are two typs of options for Foreign currency postings.

OPTION -1                                                                       OPTION-2

When Exchange Rate is not entered                           When Exchange Rate is  entered

at the time of Posting the Document                            at the time of Posting the Document

In Option 1, system take the Ex. Rate                    Rates are entered by End User , but not

from Forex Table                                                     the System.

It takes the Latest Rate from Table

Ex.           on 09.07.09  Rate is 45

on 21.07.09 Rate is 49

If we want to enter document on 20.07.09, system will take the rate of 45 not 49

To Enter Default Exchange Rate type based on Document Type.

Doc.          Nature of Document                                 Type of

Type                                                                         Ex. Rate

SA             General Ledger Posting                            B

KR             FI Purchases                                            B

RE             MM Purchases                                         B

DR             FI Sales                                                   B

RV             SD Sales                                                 B

NOTE:   If we do not specify the Ex Rate Type , system will take automatically"M"( Average)

To Enter Default Ex. Rate Type "B"(Bank Selling Rate) for Document  "SA" (OBA7)
                                       GL Document----> Select Details Button

Under Default Values:

Ex Rate Type for foreign currency document    B"          

                        Select Save or Ctrl+S

                        Press Enter to Save in your Request.

Posting of Foreign Transactions ( F-02):

Doc.Date                                    23.07.09  Company Code:          PSL

                           Post Date                                23.07.09  Currency : USD    Rate   Blank

                        Document Type:                         SA

                          Post Key:            40        Account No: 400100 → ENTER

Amount               1000 USD            Amount in LC   Blank                    49.5

Bussiness Area:           PSLH

Text:          Salaries Postings

Post Key:               50                     Account No:                200100 →         ENTER

Amount      *                                   Bussiness Area:  PSLH

Text:          +               

Menu----> Document----> Simulate      and Save

To View Document in INR Select Display Currency Button(F8).  Select Save or Ctrl+S

Option 2  :When Exhange Rate is entered at the time of posting

Salaries Provison ( F-02)

Doc.Date                    23.07.09        Company Code: PSL

Post Date                    23.07.09        Currency : USD    Rate                            50.00

Document Type:          SA

Post Key:               40                     Account No: 400100 → ENTER

System will give warning message Ex. Rate 50.00 deviates from Table Rate 49.50 by 1.01% .  Ignore the warning message and Press ENTER

Amount               1000 USD

Bussiness Area:           PSLH

Text:          Salaries Postings           →              ENTER

Post Key:               50                     Account No: 200100 → ENTER

Amount        *                                 Bussiness Area:  PSLH

                                          Text:                     +

Menu----> Document----> Simulate          and SAVE