Exchange Rate Type per Company Code

[Former Member]

HI Experts,

In our system the conversion rates for EURX are maintained since there are several European companies working with the system.

Now we would like to use the same SAP-system for companies in China & Taiwan. In both countries there is an individual "official" exchange rate which does not equal the exchange rates stated from the German banks and thus fed into the system.

Is there any possibility to connect a company (code) with one particular exchange rate type? Since we are dealing with countries outside of the EU.

Thanks in Advance

Siva

[Former Member · Accepted solution]

Yes - You can use different exchage rates per Co Cd. Please create the new exchange rates and eter values for them. After that go to OB22, and enter the new rates for determination of Co Cd currency(Cur Type 10) and Grp Currency (Curr Type 30)

[former_member581986 · Accepted solution]

Actually, OB22 would mean that you introduce a 2nd (and 3rd) local currency for the company code. Here you can indeed enter an exchange rate type. But introducing parallel currencies for a productive company code is not supported officially by SAP (at least there are no standard tools available).

Also, if you have a China company now, with (1st) local currency CNY, and all conversions are made with rate type EURX for the moment, and you do not want (or you are not allowed) to change this, then you have to create CNY also as a 2nd local currency and enter the exchange rate type of your choice ion OB22. But in this case, users will become crazy as they will have 2 different CNY amounts in each foreign currency document: the 1st LC CNY is converted with EURX, while the 2nd LC amount is converted with your local rate type. Foreign exchange rate differences in both CNY's occur at every single clearing. Is this really what you want to do? )

<removed_by_moderator>

Csaba

[Former Member]

Hi Siva,

1)  Can you explain me, how you handled exchnage rates for China

Regards,

Ravindra

[Former Member]

Hi Csaba

We have one scenario for exchange rate type.

We are passing exchange rate type from selection screen and populating it Through BAdI in KURST field.

but at the time of FM FI_DOCUMENT_CHECK, it is giving error no excahge rate available for given exchange rate.

e.g. Screen field value : EXC1...No exchange rate availble for exc. rate type EXC1.

We have maintained it in TCURF table through OB08 transaction with valid From-To Currency/Valid From date combination..

Why it's giving this error?

[Former Member]

Hi Csaba Soltesz,

My present problem is resolved. Its great answer. I have also given the maximum points.

But, just to extend the question for my better understanding, Now, in the same situation as above, if there are two company codes in China which wants to use Different Exchange Rates, then how can we resolve the Issue. Kindly give your opinion.

Thankyou very much.

Siva

[former_member581986]

Hello Siva,

I am glad to hear this, thanks

Well, the extended question is definitely a problem. There is no really satisfying solution for that. The reason is simply that the exchange rate types are only customizable on currency code level and not on company code level. So if you have 2 company codes with the same local currency (like CNY), then you cannot use different exchange rates for them.

First of all, why would you? This exchange rate misery is usually a legal requirement. If in a particular country, e.g. China, the usage of a certain exchange rate (type) is required, then this requirement should be valid for the entire country, i.e., in SAP terms, for all company codes having this country's currency as local currency. So why differentiate between 2 CNY-based company codes?

Second, if you still need this )) there are a few options, all have some limitations and I would not really recommend any of them with heart.

1. As suggested by another user here, you could set up CNY as a 2nd local currency. In this case, one company code could use only 1 LC (CNY), using the, say, L rate. The another China company code should also use CNY as the 1st local currency (for this, the same settings ARE applied, no way to change this, so in this case, this company code is also using the L rate). But, for this second company code, you could define CNY as 2nd local currency in T001A, with another rate type (M, EURX or just another one). Then it will work, but as mentioned in the prev.post, it is not only extremely problematic to switch it on after the CoCd went productive, and 2nd, users will be stucked when seeing 2 different CNY amounts in the same line item....

2. Define a new (faked) currency code like CN2. You can name it Chinese Yuan just like the normal CNY. Define CN2 as the (1st) local currency for the another company code. You can then customize TCURF acccording to my prev.post for CN2, of course, use another rate type here, not L. In this case, pls. do not forget to make sure that the exchange rate CNY to CN2 (and CN2 to CNY) is always kept to 1. (This way you can avoid any funny exchange rate differences if a user has mistyped the doc.currency and entered CN2 ) CN2 should NOT be allowed as document currency, it is simply used as local currency then.

Hm, perhaps there are other approaches, if I can find out something else, I"ll let you know. But I am sure that no absolutely satisfying solution can be found for this issue - he reasons are explained above and I really think that you should check the legal requirements first and then try to harmonize your company codes accounting departments )

Hope that helps, <removed by myself )) >

Csaba

[Former Member]

Hi Csaba Soltesz,

Thankyou soo much for the detailed Explenation. After your first answer, i understood that it is near impossible to work with Differant rates for two company codes of same Local Currency. I have asked again, just to know if there was any remote possibility for that.

Thankyou very much again.

Siva

[former_member581986]

Hi,

as you may have recognized, the assignment cannot be made on company code (or country) level, but only on currency level. In particular, this is table TCURF.

When (almost) all possible currency combinations (from-to) are redirected to rate type EURX, then this looks like standard SAP delivery settings that you can freely change according to your needs.

If you are not familiar with TCURF maintenance, however, you should be very careful here and test every change before importing it to the productive environment.

The basic idea that I have always followed for the same or similar requirements is that local rules for a particular rate type are always control the rates to be applied when converting from any foreign currency to the currency of the particular country.

If you are a China company and your local company code currency (curr.type 10) is CNY, then you have to make the following changes to table TCURF:

First, find out all the foreign (non-CNY) currencies that you are dealing with. This may include EUR, USD, and any other currency of the world.

Then, determine (or create) a new exchange rate type in table TCURV. This should be the rate type for your "own" rates. Let's name it rate type "L" (for Local rates). Note: you can use the standard M rate type as well, but it is more transparent if you define a separate one.

Then have a look into table TCURF and find the entries as follows:

Rate type: M

From-currency: all that you are using in your business (all non-CNY that you use)

To-Currency: CNY

Valid-from: find the recent entry for each combination

With all of these entries displayed, you will find that the alternate exchange rate type field (ABWCT) in these entries is set to EURX.

Now you want to create a new TCURF entry as follows:

Rate type: M

From: the same foreign currencies as above

To: CNY

Valid-from: a newer date than the last current entry

Alternate exchange rate type: L (your new rate type) - in case you want to use just M, then leave ABWCT empty.

If you are using the L type (which I recommend), then you have to add 2 new entries to TCURF for each foreign currency:

1.

Rate type: L

From: foreign curr

To: CNY

Valid-from: 1.1.1800 (yes!)

Ratio from and to: as you want, it should be the same as in the corresponding M entry, usually 1:1, but it depends

Alternate exchange rate type: leave it blank.

2.

Rate type: L

From: CNY

To: foreign curr.

Valid-from: 1.1.1800 (yes!)

Ratio from and to: as you want, it should be the same as in the corresponding M entry, usually 1:1, but it depends

Alternate exchange rate type: leave it blank.

Finally, in OB08, you have to maintain rates like

type L, foreign curr to CNY

You are done

What is happening is the following (example you post a document in USD in your China company code)

Doc.currency USD --> must be converted to your local currency CNY

First, the system looks the current ratios for the M entry:

M, USD to CNY, valid from: recent, 1:1 and ABWCT = L !!!! (the entry you have added before)

Then it checks the ratios for L:

L, USD to CNY, valid from 1.1.1800, 1:1, ABWCT = blank

Based on TCURF, the system will look for the current rate entered under rate type L, your local rate )

Now what if a USD-based company has to post something in CNY? No changes there as the TCURF settings were not touched. They should look like this:

M CNY to USD, alt.exch.rate type EURX (or blank)

If it is EURX, then the rates enterd under EURX rate type (once USd to EUR and then CNY toi EUR) are read and the cross-rate CNY to USD is calculated.

If it is blank, then the rate entered under rate type M is used.

In both cases, no change to your current process.

It works similar if the company code is EUR based.

The main idea is: redirect all M entries in TCURF where <anycurr> to CNY to the new rate type L, but leave all other TCURF entries untouched. Direction <any> to CNY are only relevant for the China company code, the rest of the world does not care about that conversion. They might be interested in conversions like CNY to <any>, like in the above example, CNY to USD, or CNY to EUR, but that could be their German or ECB rate, you do not have to care about.

<removed_by_moderator>

Csaba

[Former Member]

Hi Csaba Soltesz ,

I have same situation which 2 company codes has local currency EUR but 1 company wants use weekly rate, another one want to use monthly rate. Both companies are productive already.

Do you have any solution to split exch rate type ?

Thanks in advance

[Former Member]

Hello,

Possibly cannot help now, but use two exchange rate types.

Regards

Waza

[Former Member]

Hi dear experts,

as advised by Csaba Soltesz (thanks for the detailed explanation!) I customized alternative/legal ER type and assigned it to the group type. Everything works fine. We're using only Company Code currency (10)

The question I have now is how I can revaluate open items in foreign currency twice, once for the legal rate type and once for the group? Revaluation according to legal rate works OK, but when I choose valuation method based on group type, the program reads alternative type as well, thus result is the same.

Any thoughts on this? Is it possible to suppress alternative ER type for revaluation purposes only?

Thanks

[Former Member]

Hello Csaba,

I have also question the Exchange rates.

We have a Company Code created with Company Code currency USD (Parallel currency is activated: Local currency 2 is also USD - Group Currency, for consolidation purposes). LC3 is not used. The business would like to use the ECB (European Central Bank) rate for making the foreign currency translation (as it is also used by other company codes already).

However, these rated are automatically downloaded to SAP for "to-currency" EUR, as they are published this way.

It means that the we have exchange rate only for document currencies USD and EUR in this case, otherwise we will run to error.

For instance we have a document currency HUF, then the system will not find any rate for the HUF to USD (even if inversion of the exchange rate type is activated).

Do you know if there is some Function Module / BAPI that can do calculation of the rate of HUF to USD, based on the daily ECB rate of HUF to EUR and USD to EUR?

Or do you have some other suggestion?

Thanks (Köszi )

Balázs