Default Exchange Rate Type

[Former Member]

Dear All,

If we do not assign any exchange rate type to any document type or customer / vendor master data, the system picks the default 'M' exchange rate type. Can anyone let me know where this default setting has been made and whether this setting can be changed? What if I do not maintain exchange rates for 'M' instead I do it for 'M1'

I have a scenario, wherein I want to make exchange rate type other than 'M' as default and we do not want to make it at the document type level or customer / vendor master data level.

To make things more clear, this is not related to the realignment / foreign currency valuation. This is related to recording of invoice export / import or credit / debit notes..

Can anyone let me know how would this be possible?

Full points guaranted

[Former Member]

Hi Swapvik,

The exchange rate type always is set "M" as default. The only way to

change the exchange rate type is with the customizing in the document type. If you are running the automatic payment program, you can also select a different exchange rate type. However, for normal document postings (trans. FB01), there is no other solution but to choose a different document type.

For example:

If you want to use exchange rate type B instead of M, in customizing you have to give Alt Ex.Type as B against M. So that it will take B rate whenever M is applicable. If you want this B rate to be applicable for specific document types then you can do the same at document type definition itself. Otherwise you can do the same At Payment program level/ Revaluation. These are the only places where exch.type comes into picture.

Please be advised that you can not change the default exchange rate type

for the 1st local currency. The default type for 1st local currency KURST of M cannot be changed. SAP does not allow for customers to setup a company code with an exchenage rate type other than M for the 1st local currency (because this could lead to exchange rate differences in the system which are not allowed).

Exchange rates are defined in SAP at a Global level via transaction OB08. In the IMG documentation for transaction OB08 (path General Settings > Currencies > Enter exchange rates) it explains that:

'The exchange rates apply to all company codes'

'The system uses the type M exchange rates for foreign currency

translation when posting and clearing documents. An entry must exist in

the system for this exchange rate type. The exchange rates apply to ALL

Company Codes.'

Hope this information helps.

Regards,

Lucas Dornelles

FI Support Consultant

SAP Active Global Support - Financials

[former_member1192081]

This message was moderated.

[dineshkumar_rengarajan]

Hello,

Exchange rate will be defaulted from the transaction OB22. There you can based on the business requirement.

BR,

D'nesh

[JozsefSzikszai]

hi Swapvik,

acc. to my best knowledge, most of the time you have no choice, but to use exchange rate type M. This is hardcoded in the system. If you don't maintain exchange rates with type M, you won't be able to post lots of documents.

This is from SapHelp:

"When posting and clearing documents, the system uses the exchange rate type "M" for foreign currency translation. This exchange rate type must be contained in the system."

hope this helps

ec