Exchange Rate configuration

Exchange Rate configuration: R/3 all Forex Rates updated using the TCode: OB08.  This is required for passing Forex Transactions, Forex Valuation and Forex Translation.In general to update Forex Rates in TCode: OB08, a background job with a Customized program is used.  These rates are getting updated in TCURR table.

Without the current exchange rate values, foreign currency invoices/transactions will either fail if there’s no existing rates or contravenes accounting policies by using an obsolete rate.

Types of SAP Exchange Rate Cconfiguration

There will be 5 Exchange Rate Types loaded to SAP from external sources:

• Daily Rate
• Month End Rate
• Monthly Average Rate
• Quarterly Average Rate     (to comply with Group Reporting)
• Planning Rate            (supplied for planning purposes)

Exchange Rate Configuration

1. Check Exchange Rate Types -OB07
2. Enter Exchange Rates – OB08
Path: IMG/Sapnetweaver/General Settings/Currencies/Enter Exchange Rates

Path: IMG/Sapnetweaver/General Settings/Currencies/Check Exchange Rate Types

3. Define Accounts for Exchange Rate Differences

Path:
1. IMG/FA/ARAP/Business Transactions/Open Item Clearing/Define Accounts for Exchange Rate Differences

2. IMG / Financial Accounting/Accounts Receivable and Accounts Payable / Business Transactions / Outgoing Payments / Outgoing Payments Global Settings / Define Account for Rounding Differences

3. IMG / Financial Accounting/Accounts Receivable and Accounts Payable / Business Transactions / Incoming Payments / Incoming Payments Global Settings / Define Account for Rounding Differences

4. IMG/FA/GL Accounting/Business Transactions/Open Item Clearing

Note: We can define GL Account for exchange rate differences in any of the above paths.

OBA1- Define G/L account.

OB08-Exchange rate type.

OBBS-Currency translation ratios

F.05- Revaluation Postings

Option-2

1. Check with your client if exchange rate types…if you need to add go to OB07.
2. Then check whether “translation ratios” are maintained for the company code currency and foreign currencies (OBBS)
3.. Maintain the exchange rate (but this one is for testing if you want to see whether it’s translating correctly. normally, this is maintained in testing clients) (OB08)

For valuation and realizing exchange rate difference loss, you need to configure the automatic account for the differences and adjustment accounts for revaluation:

Go to OBA1 and maintain the following:

KDB – Exch.rate diff. in forgn.curr.balances >> this will be assigned when your GL account is maintained in Foreign Currency

KDF – Open item exchange rate differences. Here you maintain your recon accounts (customer, vendors), clearing accounts. You have to specify the following:

1. Recon Account
2. Realized Exchange Rate
3. Valuation loss/gain (normally your unrealized)
4. Bal sheet adjustment (offsetting account for your valuations of open items)

Also See: SAP Down Payment Process an Overview