Currency conversion for key figures used as inputs for optimizer

[former_member288194]

Hello experts,

I have an issue regarding currency conversion for value key figures used as inputs for the optimizer.

The problem lies in the base planning level used for these KFs.

1- When configuring the currency conversion you have to use a base planning level containing the planning level "currency" for value key figures.

For example, in SAP2, TARGETREV is defined at PERPRODCUSTCURR.

Is it correct?

I am asking this because for UOM conversion, you don't need to include the planning level "UOM" in the base planning level of your quantity key figures.

For example, in SAP2, TARGETQTY is simply defined at PERPRODCUST.

(The UOM is in fact included in the planning level "Product").

2 - Now, if I want to perform currency conversion on value key figures used as inputs for the optimizer, I have an issue of base planning level.

For example, in SAP2, NONDELIVERYCOSTRATE must be defined at PERPRODCUST so that the optimizer can run properly. If I define this KF at PERPRODCUSTCURR, the optimizer won't be able to consider it for its calculation. Am I right?

3 - So, my question is : how can I convert value key figures used as inputs for the optimizer?

Thanks a lot for your help,

Pierre

[Irmi_Kuntze · Accepted solution]

You might create a planning level PCURR that only has the period and Currency, maybe you don't even need the period. This level has only one keyfigure, assuming you call it "CURRENCY". Load once via excel upload to initialize and maintain value 1

Your KF would be KF1

Create a formula KF2 = KF1 / CURRENCY

Use KF2 in the optimizer

I did not try that, so it is just an idea, please provide feedback if you test  this

Cheers

Irmi

[former_member288194 · Accepted solution]

Hello Irmi,

Thanks for your helpful answer! Based on your idea, I’ve found a way to use currency conversion with value key figures which are used as inputs for the optimizer.

Here is the way I have configured it for KF NONDELIVERYCOSTRATE:

The general idea is to create a new stored KF which will be convertible in multiple currencies. This KF is defined @ PERPRODCUSTCURR.

This new KF is then converted into the “base currency” in the existing KF which is used as input for the optimizer. This existing KF remains @ PERPRODCUST.

Detailed configuration:

1. Create a new attribute EXCHANGERATEBASECURR (Exchange Rate to Base Currency).

    

This attribute is different from S2EXCHANGERATE which contains every exchange rates from all the used currencies to all used currencies.

This new attribute only contains the exchange rate from all the used currencies to the “base currency”.

2. Assign the new attribute to master data XXXCURRENCY

    

Re-activate the master data and complete the existing entries:

In this example, I have chosen to use CAD as my “base currency”

3. Create a new planning level “PERCURR” - a combination of Period and XXXCURRENCY.

    

     4. Define the new attribute EXCHANGERATEBASECURR as a key figure, at base planning level PERCURR.

     

      5. Create a new KF “NONDELIVERYCOSTRATECURR” at base planning level PERPRODCUSTCURR as a classic convertible value Key      Figure. Mark it as “Indirect Input for Supply Planning”.

     The value of the non-delivery cost rate will now be stored in this KF.

    

      6. Change the definition of the existing KF “NONDELIVERYCOSTRATE” so that it is calculated with the following formula:            “NONDELIVERYCOSTRATECURR” * “EXCHANGERATEBASECURR”.

This Key Figure is now only used as an input for the optimizer. You don’t need to display it in your planning views.

    

     7. Reactivate your planning area

     You can now change and view the value of the Non-delivery Cost Rates in specific currencies and still run the optimizer.

This configuration is a bit heavy – it requires to create 10 new key figures for the 10 value key figures which are used as inputs for the optimizer (key figures with “COSTRATE”). It also requires to maintain exchange rates at two different places.

But for now, this is the only way I’ve found to use both currency conversion and optimizer.

So, don’t hesitate to comment / challenge / propose improvements to this solution!

In the meantime, I hope this can help.

Pierre