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Translation Ratio - Currencies

Former Member
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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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Former Member
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Former Member
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What is the purpose of Translation Ratio?

When I give 1 USD = 100 YEN what does it signifies

Thanks

YV

Former Member
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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.

Former Member
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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.

What is 1.1475 in the above point ? Thanks a lot.

YV

Former Member
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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

Former Member
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1.1475 is the exchange rate in the market divided by 100. SAP recommends to set the translation ratio such that the exchange rate falls between 1 and 10.

Former Member
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Hi Srikanth,

I Need to maintain an entry in OBBS for GBP to THB. How to Decide the Ratio whether its 1:1 or 100:1 etc.

Can u pls guide me on this.

THanks,

Lakshmi.