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Company code, object, and other currency configurations

Mar 27, 2017 at 02:27 PM

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Problem background:

  • We are a US entity operating in the construction space (Percentage of completion revenue recognition (contracts))
  • We operate in Brazil (Brazilian Real “BRL”) and related to these operations:
  • We have multiple BRL based CC’s
  • We have multiple US currency based CC’s where some projects are in BRL and some are in USD
  • We have construction contracts both based in USD and BRL
  • We have expenses budgeted and actualized both in USD and BRL
  • We have the need to generate financial statements at the company code level (in BRL), at a company code level in USD, and consolidating all CCs into “Brazil operations financial statements”

What I would like to be able to do:

  • Generate TBs/financial statements at a CC or consolidated level
  • Financial reporting that adjusts for changes in currency and displays FX gain/loss on a monthly basis, without manual intervention/calculations
  • Budget for spend both in USD and BRL
  • Track spending and project progress by WBS
  • WBS level cost tracking in either BRL or USD (most WBSs will have multiple currencies in the activity)
  • Get an exact idea for each project how much spend (progress) is related to currency fluctuations as opposed to actual progress

Question

Obviously there are SAP customers who have contracts that are budgeted, executed, tracked and reported in multiple currencies. The manual process we are currently employing to determine percent complete and track projects is both inefficient and inaccurate.

What key system configurations would allow for this to happen? I believe the solution lies in correctly configuring the CC currency, reporting currency, object currency, budgeting currency, etc but I am not sure of the extent or details.

Further, what configurations would allow for the monthly automated adjustment to account for FX changes that impact costs (progress)?

Thank you in advance.

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