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Problems with Venezuela Currency VEF, Dumps occurring due to hyperinflation

Feb 28 at 08:54 AM

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Hi Folks,

we have Problems in our SAP-System handling the hyperinflation in Venezuela.

There are occurring more and more dumps in our SAP-System concerning reports for Venezuela Company as SAP is not able to handle the high amounts in VEF.

We are thinking about Solutions but it's very difficult to take into account any process. Moreover we heard that there are legal restrictions (Bank, salary) which prevent Solutions to cut down amouts by 1000 to get them posted.

Do you have any ideas how to handle this Problem?

How do you deal with that if you also have Business in Venzuela?

Kind regards,

Udo

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5 Answers

Gabriel Felipe Coleti Feb 28 at 12:00 PM
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Dear Udo,

Which kind of report you are having problems ? The event of inflation is just the price growth often, the impact on that is that VEF prices are growing and now is based in thousands, millions, etc. Usually, in scenarios like that, accounting reporting are usually analized in the strong currency, those currencies that don´t have high inflations such as USD, GBP, EUR, etc.

The recommendations in your case is the use of the Index-based Currency - Currency type 50 (check here the use): for example you can define an additional currency(2nd and 3rd local currency) with the same name, but different code for venezuelan bolivares, let´s suppose VE1, you can call it for example "Venezuelan Bolivares (Index Currency) and than, you maintain the exchange rate between VEF and VE1 with the same amount, but divinding by one thousand (1.000) for example. Than you extract your reports based in the Index-Based Currency.

Check OSS Note 2317220 - How to set currency key to currency type

I hope this could helps you... Good luck with that,

Gabriel Coleti

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Udo Fehring Mar 02 at 09:18 AM
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Hello together,

I have another question:

Is it allowed to cut the decimals of the VEF in the System.

At the Moment VEF is defined with 2 decimals.

I don't know if this is possible and allowed by the local authorities?

Kind regards

Udo

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Udo Fehring Feb 28 at 01:57 PM
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Dear Gabriel,

thank you very much for your answer.

I will share your recommendations with my colleagues and will be looking forward to their reactions.

Will come back to you anyhow.

Thanks again!

best regards

Udo

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Udo Fehring Mar 01 at 01:45 PM
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Hello,

I got the following answer from my colleague:

Dear Udo,

1st – Many thanks for your comment !

2nd – I can already tell you that Venezule was adjusted with this pramater (System P4S) long time ago… see below J

3rd -As I see it, this might be useful for reporting purposes, but … it doesn’t really replace the local currency completely. In other words, whenever an amount needs to be convered to VEF, our problem of amount overflow, still exists L Also, my impression was that all local transactions should be done in VEF anyhow … Or am I wrong ? Are we allowed to use for day-to-day business a different currency ?

Can anybody advice how to really avoid These dumps concerning VEF?

Kind regards

Udo

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Gabriel Felipe Coleti May 15 at 02:28 PM
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Dear Udo,

Please note that SAP release some KDB Note about the Hyperinflation at Venezuela. It can helps others with the same issue.

2626145 - Hyperinflation at Venezuela

Symptom

Venezuela's solutions are returning errors since the amounts exceed the available character's length.

Cause

SAP system tables have a limit of 13 length (11 digits + 2 decimals) for amounts. Due to hyperinflation, scenarios at Venezuela can overflow this limit.

Resolution

Venezuela is one of the supported countries for Inflation Management (as per SAP Note 1305539).

The short term solution for this scenario would be to split the document, following SAP Note 2051559 . It is the simplest and most secure solution.

Another solution would be upgrade to S/4HANA system, which has 23 digits for amounts.

If you need more decimal places, you can use the ratios (OBBS) in combination with a differently stored rate to have more significant digits for the related overall 'calculated' exchange rate. Please, check SAP Note 783877.

For information about the change of currency at Venezuela from Bolívar Fuerte (VEF) to Bolívar Soberano, please check SAP KBA 2623984.

Virtual currency or hard currency switch is NOT legally allowed at Venezuela. The Venezuelan government insists on using VEF (for now) as the currency for all transactions. Regardless, the steps for virtual or artificial currency can be found at SAP KBA 1779311.

Best regards,


Gabriel Coleti

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