on 09-11-2009 2:56 PM
What is Translation Ration in currency Translation?
In the Translation Ratio, config step, I am saying the ratio 1 USD equals to 100 YEN in Ratio - what does it means?
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The translation ratio maintained between a pair of currencies in transaction code OBBS is displayed in the exchange rate maintenance transaction OB08.
For example, you maintain a translation ratio of 100:1 for JPY:USD. You then maintain exchange rate in OB08 as under.
1.1475 * 100 JPY = 1 USD.
While doing currency translation, system looks at the exchange rate as well as the translation ratio maintained for the pair of currencies. While maintaining exchange rates, you have a limitation of 5 decimal places. The translation ratio helps you in maintaining exchange rates in case of weak currencies such as IDR, ROL and TRL.
Hi
There is the concept of Direct quotation & Indirect quotation.
Eg.,
If your company code currency is USD, you want to map it with INR (Foreign Currency) , then you have to define a pair of currency set as INR:USD = 1:1.
You have to define the exchange rates as:
If you want to define under Direct quotation method= 0.45000 (exchange rate) (Local currency to Foreign Currency comparision)
or If you want to define under indirect quotation method = 45.000 (exchange rate) (Foreign currency to Local currency comparision).
For more details you can refer: http://help.sap.com/saphelp_erp60_sp/helpdata/en/2d/830e405c538f5ce10000000a155106/frameset.htm
Regards
CHINNU
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