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Exchange Rate Concept. e.g. - 1.00 EUR = 67.1500 INR

Dear Experts,

Can anybody please explain the concept of exchange rate.

How calculation is made of exchange while currency conversion.

For example -

Current exchange rate - 1EURO = 67.1500 INR

Import Purchase order quantity - 50

Unit Rate = 463.

Please brief me on Currency Exchange Rate in details.

Additional info is required on it.

Thanks in Advance.

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3 Answers

  • Best Answer
    author's profile photo Former Member
    Former Member
    Posted on Sep 22, 2008 at 04:40 AM

    hi ,

    we have three types 3 types of exchange rates basically ( but can have as many exchange rates ) .

    buying rate , selling rate , average rate ( M ) .

    exchange rate will occur in import purchase or export .

    import procurement .

    1.when we create PO for forgein vendor , the default exchange rate ( M type ) will be displayed based on the document date .

    2.when the material reaches to customs , duties will be calculated based on customs exchange rate ie ( M type rate ).

    3.GR willbe valuated with the exchage rate which is attached to the material document type .

    4.invoice will be valuated with the exchange rate based on the invoice document date .

    5.payments to vendor wiii be done with spot rate

    export

    all sales will be valuated with selling rate .

    u can see all types of exchange rates in OB08

    regards

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  • Posted on Sep 21, 2008 at 01:22 PM

    Hi,

    You can check the Exchange rate b/w EUR and INR in transaction OB08.

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  • Posted on Sep 22, 2008 at 03:23 AM

    HI,

    When entering into internal foreign exchange transactions, you can also use the report Exchange Rate Overview for Internal Foreign Exchange Transactions. This gives you an overview of the current exchange rates for each currency. You can also use this report to check the Customizing and the market data for completeness.

    You define exchange rates in the system for the following purposes:

    Posting and Clearing

    To translate amounts posted or cleared in foreign currency, or to check a manually entered exchange rate during posting or clearing.

    Exchange Rate Differences

    To determine gains or losses from exchange rate differences.

    Foreign Currency Valuation

    To valuate open items in foreign currency and foreign currency balance sheet accounts as part of the closing operations.

    You can maintain exchange rates in OB08 between two currencies.

    Thanks & Regards,

    Kiran

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