Help on Direct and Indirect Exchange Rate formula

[Former Member]

Dear Experts,

As per subject, can anyone write the formula of how both "direct" and "indirect" exchange rate calculation works in SAP B1?

Warmest Regards,

Chinho

[K_Pauquet]

Hi Chinho,

Direct: X units of local currency (LC) = 1 unit of foreign currency (FC)

Indirect: 1 unit of LC = X units of FC

Therefore, considert his example:

LC = EUR

FC = GBP

GBP Rate is set as 1.23

Document total = GBP 10.00

GBP 10.00 = EUR 12.30 when using the 'Direct Method' (1.23 EUR = 1 GBP)

GBP 10.00 = EUR 8.13 when using the 'Indirect Method' (1 EUR = 1.23 GBP)

All the best,

Kerstin

[Former Member]

But what is the purpose of Direct and Indirect Exchange rate. If we set the Exchange rate type M for Direct Exchange rate, cant we do both payables and receivable with one Exchange rate.

Why and When do we use Direct and Indirect Quotation Exchange rate.