Presented by Ashish Sampat
Dive into the heart of SAP currency management and revolutionize your understanding of currency maintenance in FI/CO!
Tune in and gain insights into:
✨ Important currency tables and exchange rates
✨ Transaction codes for seamless exchange rate maintenance
✨ Currency types across FI, CO, ML, and CO-PA
✨ Programs and modules for efficient exchange rate reading
✨ Foreign Currency Revaluation transactions and setup
Don't miss out on this invaluable opportunity to elevate your SAP expertise!
Q&A
1) If rate for a currency pair is available (e.g., EUR to USD), do we also need to maintain the rate for the opposite combination (USD to EUR)?
a. If you have configured the exchange rate type to allow for Inverse rates in OB07 (Exchange Rate Type configuration shown on slide 25), then no need to maintain the opposite combination.
b. One can still maintain the inverse rate, if maintained the opposite combination rate will be used. However, if the USD EUR rate is not maintained, then the inverse rate will automatically be picked up.
2) Apart from initial data load of opening balances, what others business scenarios can FBB1 be used for?
a. We can possibly use FBB1 for correction journal entries which involve group currency, and we want the group currency to have the same rate as the original document.
b. Here we can explicitly enter the amounts in document currency, local currency, and group currency, rather than deriving these amounts from the exchange rate table.
c. This is more relevant when correction is done across different dates, or different fiscal periods where the exchange rate has changed.
3) What are the features of an extension ledger? And how does it differ from a parallel ledger, especially from the point of view of currencies?
a. Extension ledger was introduced to enable postings to be made that do not affect the main ledger.
b. An extension ledger becomes the main vehicle for adjustments which should be reported for internal/tax reporting.
c. Extension ledger brings controlling or tax flavor to ACDOCA – so that CO-only adjustment entries can be made, without impacting the main ledger.
d. Extension ledger is an optional feature and can also be used for local legal reporting.
e. Till ECC, only parallel ledgers were supported, which post all entries of main ledger in the parallel ledger. This amounts to duplication of data.
f. S/4 supports both parallel ledger, as well as extension ledger. When it comes to currencies, parallel ledger has more flexibility, as compared to extension ledger.
4) Can you please cover the topic of functional currency introduced with 1909? Use cases, best practices etc.
a. SAP note 3200089 - Functional Currency in SAP S/4HANA gives a good overview on Functional Currency.
b. In most cases, the company code currency is used as the functional currency.
c. In a scenario where most transactions are conducted in a currency other than the country’s own currency (e.g., A Swiss company conducts business mainly in Euro, thereby adopting EUR as the functional currency, rather than CHF)
5) What is the difference in a 0:0 ratio and a 1:1 ratio that I've seen depending on how ratios were loaded?
a. OB08 will show accurate ratios since it reads data from TCURR as well as TCURF. However, TCURR standalone does not reflect the ratios from TCURF. It can be confusing to see a 0:0 ratio (or blank), when the expectation is to see 1:1.
b. Per SAP Note 3200089 - Functional Currency in SAP S/4HANA “Table TCURR stores the exchange rates that are absolute, not ratios. Table TCURF stores the conversion of currencies in ratios. So FFACT and TFACT are always non-zero in TCURF and are always zero in TCURR.”
c. Also review SAP Note 783877 - Currency translation: FAQ “The fields FFACT and TFACT for exchange rate factors are present in table TCURR, but they are of no importance. The factors displayed in Transaction OB08 (Maintenance view of V_TCURR for exchange rate entry) are always taken from table TCURF, and not from table TCURR.”
6) In OMWN, if we make the customization to make the comparison against Planned exchange rate how PRD IS affected? Can we separate and have the PRD clean with a real price difference?
a. [I believe the question was meant to highlight OMRW and not OMWN?].
i. OMRW Treatment of Exch. Rate Differences
ii. OMWN MM-IM: Acct Group. Code for Mvt.Type
b. In OMRW, one can configure whether the difference will be posted as price difference, or exchange rate difference.
c. If we select price difference, all difference is posted to PRD; if we select exchange rate difference, then exchange rate difference is posted to KDM, all other differences are posted to PRD.
d. It is a good practice to separate out PRD and KDM, that way procurement can be held accountable for the pure price differences.
7) What does the balance sheet adjustment do during FCV run?
a. This is more around whether you want to put the difference in a P&L account, which typically most clients do. The offset of that would be to do a balance sheet adjustment.
b. This feature is mainly applicable to the unrealized gain/loss on foreign currency translation.
c. Realized gain/loss are typically P&L accounts, where the final actual value of exchange rate is account for.
8) In standard functionality during customer billing, the accounting is captured by exchange rate type M. How can we change it to any other exchange rate type like G? Why wouldn't you put the currency on the document type?
a. If it is required that all customers to use a specific exchange rate type for billing, you would probably end up customizing.
b. There is also an option to setup exchange rate type for specific customer (table KNVV, field KURST).
9) What is the use of index-based currency?
a. Index-based currency is used for external reporting in a high inflation scenario.
10) Is it possible to understand the alternate exchange rate function as for countries like Poland where the regulatory requirement requires a daily exchange rate?
a. OBBS has following definition for Alternative exchange rate types: “Alternative exchange rate types are used to process currency translations for certain currency pair combinations from a given date using a different exchange rate type.”
b. This is applicable for expiring currencies (like BEF, DEM, FRF, NLG, etc. which switched to EUR).
c. Daily exchange rate can be maintained for any currency pairs, if needed to meet local legal requirements.
11) When you say 8 additional currencies, can you mention those currencies and how to assign them?
a. When you look at the details of SAP Note 2344012 - Currencies in Universal Journal, it highlights an example configuration with possible options to select currency types.
b. Currency codes are in turn assigned to currency types.
12) After go live, we need to introduce new currency in our transaction. How do we update in all documents posting? Is this possible to add a third currency (like hard currency) in a productive system?
a. Look for the “Manage Currencies” setup in SPRO under Financial Accounting à Financial Accounting Global Settings à Tools à Manage Currencies
b. This feature allows enriching data for existing company codes. Several steps are involved for Preparation and Execution of the currency conversion project.
c. System Landscape Optimization (SLO) / System Landscape Transformation (SLT) / Data Management and Landscape Transformation (DMLT) service may be needed in some instances.
About the Speaker
Ashish Sampat is a distinguished finance and costing professional with over 20 years of experience in the SAP Finance and Controlling space. Throughout his illustrious career, Ashish has consistently delivered innovative and effective solutions to global clients, addressing various complex challenges in SAP Controlling. His extensive expertise and dedication to excellence make him a sought-after consultant and speaker in the industry. Ashish's profound knowledge and practical insights will undoubtedly provide valuable perspectives to our webinar attendees.