Daily Rate for Budget Allocation

[Former Member]

Hi,

Before posting this thread i have went through various forums and threads and didn't get any idea on the steps to follow for budgeting to use daily/current rates.

Our business scenarios is like this, Due to FX Rate fluctuation, Budget needs to be supplemented when ever required based on the situation if M rate is used in budget profile.

I have modified budget profile to use 1001 current exchange rate but when ever budget is allocated in CJ30 it still uses the 1st day of the year instead of current date.

I have tried all possible settings but could not find the way out .Pls let me know if i have missed any steps to follow to achieve this reqmt.

Please advise and share your thoughts.

Thanks !

[former_member496398]

Hi Aoron,

Please check this SAP help link which is about "Budgeting in more than one currency" which has different scenarios this may help you to solve the issue.

http://help.sap.com/saphelp_470/helpdata/en/1b/75a9371c726343e10000009b38f842/content.htm

Regards,

Harish

[Former Member]

Thanks Harish for sharing the link. But i dont see any info mentioned and available to pick up the current date for posting of budget. Pls advise

[Former Member]

Sorry for the delay in response. Thanks Sanjeev & Paulo for your comments.

With existing project, If budget is allocated for 100 USD and after conversion in Malaysia ringgit is 300 MYR as translated from conversion rate of Day 1 of beginning for year i.e 01/01/2016.

Later after few months if the exchange rate increases for ringgit.

For example : 100 USD = 400 MYR

Then if budget is allocated today, The system still translates from 01/01/2016 as 300 MYR for 100 USD and later budget needs to be supplemented to match the current market coversion rate which is higher then the DAY 1 of the year.

Thanks !

[Paulo_Vitoriano]

Hi Aoron,

It looks like in your case it is better to have availability control in USD, that I assume is CO Area currency.

As you can see on the profile screen currently you have AVAC in Object Currency, that I assume is MYR.

This is purely business decision and the currency should reflect for majority of transactions, and not to the fact of exchange rate going one way or another.  Now imagine you have a budget in USD, but MYR gains more weight, so for MYR spendings you will get a smaller budget.

Regards,

Paulo

[Former Member]

Thanks for your thoughts Paul, But still the business wants to go for daily rate on the scenario.

Is there a possiblity to achieve it or any config changes required apart from the Rate type identified in the budget profile.

[Paulo_Vitoriano]

Hi Aoron,

It is a daily rate convertion for the flow of actual values.

But for the availability control you need to choose just one currency, it cannot be USD when transaction currency is USD and MYR when transaction currency is MYR.

Regards,

Paulo

[Former Member]

Hi Paulo,

I understand that daily rates are applied for flow of actual values

From the budget profile i have attached, Is there something incorrect i have done on availability control settings,

But do we have option for using daily rate for budget allocation on Project/WBS ?

Thanks

Aoron

[Paulo_Vitoriano]

Hi Aoron,

As I wrote before it is a business decision in which currency to maintain availability control.  It is not something right or wrong.  Both options (CO Area currency and Object currency) have own problems/issues associated.

My opinion is that business needs a currency in which most of transactions in terms of value take place, from that perspective MYR is probably the right choice.

But for the situation that you complain about the USD will suit you better.

You keep on mentioning the "daily rate", but there is no currency conversion for the currency of the availability control.  It is your transactional currency that is converted into the currency of availability control.

Regards,

Paulo

[Former Member]

Thank for your suggestion Paulo,

Currently budget profile use "M" Rate for budget posting and the requirement is to use daily rates or current rate for budget allocation on the day of posting instead of using average "M" Rate.

I have modified the profile to use I001 to use current rate and tested with posting budget on current date and it still picks up the M Type rate of Day 1 of the year i.e 01/01/2016, Am i missing something in the config ?

Please advise.

[Former Member]

HI Aoron,

Budget profile should have exchange rate type M for average price.

Please check in table TCURR, if the daily rate is maintained for exchange rate M and I001.

Thanks and regards,

Narender.

[Former Member]

Hi Narender,

I have maintained the currency in OB08 for M & 1001 respectively before setting up the rate type I001 in budget profile for current date.

Thanks

Aoron

[Paulo_Vitoriano]

Hi Aoron,

Sorry, but I do not understand the issue yet.  Your budget is controlled in local Company code currency as well as it is maintained in the same currency.

For the flow of actual values the system uses daily rate and foreign transaction currency is translated to local currency on that rate.

Can you illustrate the issue by simple example?

Thank you,

Paulo

[sanjeevc]

Hi Aoron,

you just put time frame as per requirement so that same budget functionality could check before OR after time.

Use of exchange rate type in system.

You can use the exchange rate type to define a buying rate, selling rate, or average rate for translating foreign currency amounts. You can use the average rate for the currency translation, and the bank buying and selling rates for valuation of foreign currency amounts.

Regards,
Sanjeev