Exchange Rate Configuration

[former_member200298]

Hi Experts,

I have only one company code 1000 in India. This company code has Customers and Vendors in USA , JAPAN and Switzerland. What are the Configuration settings in  do i need to make in CURRIES to make possible for foreign transactions.

[Former Member]

Hi Purna,

You need to do foreign currency configuration and foreign currency valuation configuration.

A) foreign currency configuration

Implementation Guide--> SAP Net Weaver --> General Setting--> Currency

  1) Check Currency Code

  2) Set Decimal Place for Currency ( Do not change it).

  3) Define Translation Ratios for Currency Translation.

    ExRT      From      TO      Valid form      Ratio f      ratio T

    M           INR         USD   01.04.2013      1                1

    M           INR         JPY    01.04.2013      1                100

    M           INR         SZL    01.04.2013      1                1

    M           USD        INR    01.04.2013      1                1

    M           JPY         INR    01.04.2013      100            1

    M           SZL         INR    01.04.2013      1                1

4) Enter Exchange Rates

    Exrt Valid form      Indir.Quot      from      Dir.Quot      To

    M      31.01.2014 ---------             USD       62.36      INR

    M      31.01.2014 ---------  100      JPY       60.95       INR

    M      31.01.2014 ---------             SLZ        69.32      INR

B) currency valuation configuration.

   

Account Determination (OB09)

Double click on  Exchange Rate Dif.: Open Items/GL Acct – KDF

Enter Chart of account

Click on New Entries

150000- Vendor Reco Account

330920- Foreign Exchange Gain/loss Account

150002- Balance sheet Adjustment Account

I hope this is helpful for you.

Thanks,

Aditya

[former_member200298]

hi Aditya,

Thanks for quick response.

Need clarity regarding "Define Translation Ratios for Currency Translation."

Why is the Ratio Between inr and jpy is 1:100 ? need clarity. why not 1:1....

[Former Member]

Japanese Yen does not have decimals

Yen is similar to Paise or Cents but there is no Rupee.

Hence ratio is 1:100

[Former Member]

Hi Purna,

As mention by V Anand, Japanese Yen does not have decimals.

it is worldwide standard ratio.

Thanks,

Aditya

[Former Member]

Hi Purna,

Please refer to link below which might be useful for Foreign Currency Valuation

Foreign Currency Valuation - ERP Financials - SCN Wiki

Regards

Anand

[former_member183378]

Hello Purna,

You can find the answer to your query in the following discussion thread in SCN.

http://scn.sap.com/thread/1167819

I hope it helps!

Thanks & Regards,

Lakshmi S