Exchange Rates maintenance in SAP

Every business dealing in multiple currencies have a requirement of managing Financials via Exchange rates. It may be for Legal Reporting or for internal reporting. In this blog we will discuss about the options available for managing exchange rates and how to do those. It may be very common topic of the experienced consultants but for new learners or for junior consultants its really good to know and learn

 Transactions used:

1. OBBS
2. OB08
3. TCURMNT

 Table used:

1. TCURR

 Authorization Object:

1. S_EXCHRATE

 Key Concepts:

 What is Exchange Rate?

If you book a transaction of 80 USD and your reporting currency is NZD then you need to find out what's the value of that 80 USD in NZD. Let's Say 1 USD = 1.38369 NZD so 80 USD = 110.698 NZD. This is known as exchange rates and it applies to both purchases and sales transaction in any business as you may buy or sell in any currency.

 What is Translation Ratio?

When the rate between two currencies is too huge, we use translation ratio and maintain the rate. This is to simply the exchange rate calculation. Rate between USD and HUF is too high. So we maintain USD:HUF ratio as 1:100. With this calculation changes. Rate maintained between USD and HUF is 1 USD = 90 HUF. This means 1 USD = 90*100 = 9000 HUF. This is denoted by Relation 1:1 in the image

 Exchange Rates Maintenance

Exchange rates are maintained through t-code OB08 and are stored in table TCURR. It is simple process to update this table However during month end where many users of different countries try to update this at the same time they get error due to table lock. Exchange rate work list concept can be effectively used here to lock only required entries during exchange rate maintenance

 Exchange Rates Worklist

Go to “Define Work list for Exchange rate entry” and create a new entry with proper name, description. Select maintenance interval as per business requirement like daily, weekly, monthly, quarterly etc. This is just an indicator of validity of latest exchange rate. System don’t do any cross validation with this date which using the rate

Go to “Assign Exchange rate to the work list.

Here, we assign the currency pairs and exchange rate type combination which comes under the purview of business scenarios. Recommendation is to create one exchange rate work list per country and assign all the exchange rate types and currency pairs to be manually maintained to that work list

 Exchange Rates Maintenance via Worklist

Go to t-code TCURMNT, double click on the work list you are interested at. In the next screen, we can see all the exchange rates assigned to this work list only. Maintain the valid from date, exchange rate value (Direct/Indirect rate as defined in earlier configuration) and save the entry

 Benefits of using transaction TCURMNT

1. Simple
2. No issue related to entry lock
3. User can see only what they are maintaining
4. No chance of mistakenly updating what was not needed

Images - Worklist

Source SAP.com, blogs, google.com

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