Foreign Exchange Rate

[Former Member]

The document type AF  shows currency translation for depreciation entries using different exchange rates (not daily rates) compared to document type SA (the currency translation is correct as it is using daily rates). The exchange rate type M is assigned correctly to document type AF, similar to document type SA. The rates in exchange rate table for that particular date are correctly reflected in SAP document type SA but not in document type AF. Is there some other place where exchange rates are configured for depreciation postings, from where the system is pulling them?

[narasimhulu_konnipati]

Hi Sean,

As per the SAP Standard and Global policy, the Depreciation (periodic posting) will be converted from Company code currency to parallel currencies at Historical exchange rate. Means, what ever was the rate updated at the time acquisition, the same rate will be taken for depreciation posting. This is correct. Because, if the system posts the depreciation with current date exchange rate, then the APC value will not get 100% depreciated at the end it's useful life.

Let's say en example....

Asset 1000 has acquired on 01.01.2011

Useful life is 2 years

Acquisition value in LC1 is 5000 USD

Maintained a parallel currency (Group) GBP and the value is 1 USD = 0.75 GBP (1 GBP = 1.33 USD)

5000/1.33 = 3760

Now, the yearly depreciation should be 2500 USD

If you post the depreciation on current rate let's say 1 USD = 0.70 GBP, then the APC value will be more than posted depreciation at the end of 12.31.2012.

If the exchange rate is 1 USD = 0.80 GBP, then the depreciation will be more than posted APC values.

If you still want to post the depreciation at current rate though it is not suggestible, use the below note. It helps for your requirement fulfillment

SAP Note 95314

Hope this helps

BR,