Global SAP Implementation

Case Study for Exchange

rate setups
Overview
Global SAP FI CO Lead

Overview of foreign exchange rate types

1.

Overview

2.

List of exchange rate types used

3.

Sources and upload of different exchange rates

4.

Scenarios & System settings

5.

Foreign exchange revaluation overview

File Number- 2

Overview of foreign exchange rate types overview

Leading ledger of company codes are managed in local currency of the country of the company code.
Corporate monthly exchange rate published by Reuters are applied to translate foreign currency amounts to
local currency. Certain countries are exempts (Bulgaria, Poland, Romania).
These countries are using the local rates published by the National Bank of the country to translate to local currency
instead of Global Company Corporate monthly rate. Local exchange rate types are set up as alternate rate type to the
Global Company corporate monthly exchange rate when translating to local currency in these countries.

Additional views available for parallel fx valuations

2nd local currency - group currency USD using Global Company corporate yearly exchange rate - this is available for
all company codes.
3rd local currency - global company currency using European Central Bank Daily rate or local rates published by the
National Bank of a country - available in certain countries (Hungary, Italy, Slovakia).

Local exchange rate types published by the local national banks are assigned to certain countries to prepare
VAT report in national currency
There are monthly FX revaluation jobs to revaluate AP/AR open items and GL balances using Global Company
corporate monthly exchange rate into the leading ledgers. Same monthly revaluations are done into local
ledgers by using local exchange rate types of the country.

File Number- 3

Overview of foreign exchange rate types List of exchange rate types used

Exchange rate types used (OB07)

Global Company Corporate Monthly Rates provided by Treasury / published by Reuters /

translate foreign currency amounts to local currency of the company codes in accounting documents /

Global Company std translation for cost planning provided by Treasury / updated at year end /
translate foreign currency amounts to group currency (USD) in accounting documents

Global Company SD pricing exchange rate provided by Treasury / updated at year end /
translate foreign currency amounts to local currency of the company codes in sales documents

BNB

Daily local exchange rates published by the Bulgarian National Bank / translate foreign currency amounts
to currency BGN local currency of Bulgaria 1st local currency and VAT reporting in national currency

Daily local exchange rates published by the National Bank of Czech Republic / translate foreign currency
amounts to currency CZK local currency of Czech Republic for VAT reporting in national currency
purpose only

ECB

Daily Fx rates published by the European Central Bank Daily / translate foreign currency amounts to
currency EUR for valuation view for 3rd local currency in Slovakia and Italy and VAT reporting in national
currency purpose

HNB

Daily local exchange rates published by the Hungarian National Bank / translate foreign currency amounts
to currency HUF local currency of Hungary for valuation view for 3rd local currency and VAT reporting
in national currency
File Number- 4

Overview of foreign exchange rate types - List of exchange rate types used

Exchange rate types used OB07

NBP

Daily local exchange rates published by the National Bank of Poland / translate foreign currency amounts
to currency PLN local currency of Poland 1st local currency and VAT reporting in national currency

NBPC

local exchange rates published by the National Bank of Poland / translate foreign currency amounts
to currency PLN local currency of Poland for rates in in sales documents only

ROB

Daily local exchange rates published by the National Bank of Romania / translate foreign currency
amounts to currency RON local currency of Romania 1st local currency and VAT reporting in national
currency

Monthly local exchange rate published by the Swiss tax authorities / translate foreign currency amounts to
currency CHF for VAT reporting purposes

ID

Indonesia Tax Exchange Rate - Monthly local exchange rate published by the Indonesian tax authorities /
translate foreign currency amounts to currency IDR for VAT reporting purposes

NBKZ

Daily local exchange rates published by the National Bank of Kazakhstan / translate foreign currency
amounts to currency KZT 1st local currency and VAT reporting in national currency

NBR

Daily local exchange rates published by the National Bank of Russia / translate foreign currency
amounts to currency RUB 1st local currency and VAT reporting in national currency
File Number- 5

Overview of foreign exchange rate types - List of exchange rate types used

Exchange rate types used OB07

BNM

Monthly local exchange rate published by the National Bank of Malaysia / translate foreign currency
amounts to currency MYR for VAT reporting purposes

NBUA

National Bank of Ukraine (Not Live)

RSB

Serbian National Bank FX rate (Not Live)

Corporate A02 Rates(Mth. End Av.)

AS01

Treasury AS01 for M-end revaluation

Corporate daily rates

CBEA

Central Bank of Turkey Effective Buying

CBES

Central Bank of Turkey Effective Selling

CBMX

Central Bank of Mexico

CBTA

Central Bank of Turkey Buying rate

CBTS

Central Bank of Turkey Selling rate

File Number- 6

Overview of foreign exchange rate types - List of exchange rate types used

Exchange rate types used OB07

ID

Indonesia Tax Exchange Rate

File Number- 7

Overview of foreign exchange rate types Sources and upload of different exchange rates

Rate type

Source

Load

When

IT
Checks

Technical
Accounting
Validation

M Global Company
corporate monthly
exchange rate

http://treasury.Glo
bal
Company.com:90
00/treasury/fxrate
s/

-Interface using Idoc

EXCHANGE_RATE01

Loaded on the
last Thursdays,
valid from the last
day of a period
(Saturday)

Support
team

GA
Manager/

During period
December / valid
from January
next year

CPS

Not required

During period
December / valid
from January
next year

CPS

Not required

daily after 13:00

GMT

Support
team

GA
Manager/

A Corporate A02
Rates (Mth. End
Av.)
D Corporate daily
rates

-Job:
CPSFIEM00000REUTFX
- Files loaded are stored in
Unix folder /interf/BRP>900>
Finance > Interfaces >
Reuters_FX > CompleteArchive

P Global Company
std translation for
cost planning
Z Global Company
SD pricing
exchange rate

BNB rate for

Bulgaria

http://www.bnb.bg/
Statistics/StExterna
lSector/StExchang
eRates/StERForeig
nCurrencies/index.
htm?toLang=_EN&
toLang=_EN
Download
http://www.bnb.bg/

load by CapGemini who

downloads the file from the
web, saves to Unix foder
and load by transaction
ZFI_LOAD_FX_

File Number- 8

Overview of foreign exchange rate types Sources and upload of different exchange rates

Rate type

Source

Load

When

IT
Checks

COTA
Validation

C rate for Czech

Republic

http://www.cnb.cz
/en/financial_mar
kets/foreign_exch
ange_market/exc
hange_rate_fixing
/daily.txt?date=dd
.mm.yyyy

Autosys / prg
ZFI_LOAD_FX
Job BRP-CCPSFIEM00002FXCNB1

Schedule daily
15:30/16:00 GMT

Support
team

GA
Manager/
CapGemini

ECB rate for Italy

and Slovakia

http://www.ecb.int
/stats/exchange/e
urofxref/html/inde
x.en.html

Autosys / prg RFIMPNBS

Schedule daily
17:00 GMT

Support
team

GA
Manager/
CapGemini

http://www.mnb.h
u/Root/Exchange
Rate/arfolyam.xls
x
(new link!)
Also see
http://www.mnb.h
u/en/arfolyamok

Definitely still manual

loaded by Cap, (we do
have a job on hold but it is
not programmed)

Working day
after 18:00 GMT

Gennpact

GA
Manager/
CapGemini

http://www.nbp.pl
/home.aspx?f=/ku
rsy/kursy_wiecej.
html

Autosys / prg
ZFI_LOAD_FX

Schedule daily
at 15:00 GMT

Support
team

GA
Manager/
CapGemini

HNB rate for

Hungary

NBP rate for

Poland

Job: BRP-CCPSFIEM00000FXECB1

ZFI_LOAD_FX_
HNB format must be in txt
HNB_YYYYMMDD.txt

Job: BRP-CCPSFIEM00004FXCNB12
File Number- 9

Overview of foreign exchange rate types Sources and upload of different exchange rates

Rate type

Source

Load

When

IT checks

COTA
Validation

NBPC rate for

Poland

http://www.nbp.pl/
home.aspx?f=/kur
sy/kursy_wiecej.ht
ml

Autosys / prg
ZFI_LOAD_FX
Job: BRP-CCPSFIEM00005FXCNB1

Schedule daily
14:00 GMT

Support
team

GA
Manager/
CapGemini

ROB rate for

Romania

http://www.bnr.ro/E
xchange-rates1224.aspx

Autosys / prg
ZFI_LOAD_FX

Schedule daily
19:00 GMT

Support
team

GA
Manager/
CapGemini

Scheduled
Monthly on last
Friday 14:30h
GMT

Support
team

GA
Manager/
CapGemini

Schedule daily
to be defined

Support
team

GA
Manager/
Genpact

Job: BRP-CCPSFIEM00006FXCNB1
V rate for
Switzerland

Indonesia

10

http://www.estv.ad
min.ch/mwst/diens
tleistungen/00304/
00308/00692/inde
x.html?lang=de

Autosys / prg
ZFI_LOAD_FX

http://www.depke
u.go.id/ind/Curre
ncy/

load by CapGemini who

downloads the file from
the web, saves to Unix
folder and load by
transaction
ZFI_LOAD_FX_

Job: BRP-CCPSFIEM00003FXCNB

File Number- 10

Overview of foreign exchange rate types Sources and upload of different exchange rates

11

Rate type

Source

Load

When

IT Checks

COTA
Validation

Kazahstan

http://www.nation
albank.kz/?furl=c
ursFull&switch=e
ng

Autosys / prg
ZFI_LOAD_FX

Schedule daily
9:00 MST

Support
team

GA
Manager/
CapGemini

Russia

http://cbrates.rbc
.ru/tsv/978/2012/1
1/05.tsv where
978 stands for
the iso code of
the currency
(check key in
TCURC table)
978 = EUR

Autosys / prg
ZFI_LOAD_FX

Schedule daily
8:30 MST

Support
team

GA
Manager/
CapGemini

Malaysia

http://www.bnm.g
ov.my/?tpl=excha
ngerates

load by CapGemini who

downloads the file from
the web, saves to Unix
folder and load by
transaction
ZFI_LOAD_FX_

Rates updated
on the website
at 1130 MST

Support
team

GA
Manager/
Genpact

File Number- 11

Overview of foreign exchange rate types Sources and upload of different exchange rates

Rate type

Source

Load

When

IT Checks

COTA
Validation

Turkey

http://www.tcmb.
gov.tr/kurlar/toda
y.xml

Autosys / prg
ZFI_LOAD_FX

Rates are
published after
15:30 Hours
Turkey time
every day.
Exchange rate
types CBEA,
CBES, CBTA,
CBTS need to
be loaded in
SAP on a daily
basis.

Support
team

GA
Manager/
CapGemini

Mexico

12

File Number- 12

Overview of foreign exchange rate types Scenarios & System Settings

Scenarios:

13

1.

1st local currency translation is done on M Global Company corporate monthly exchange rate (All
countries except Bulgaria, Poland, Romania)

2.

1st local currency translation is done on local rates alternate to M Global Company corporate monthly
exchange rate (Bulgaria, Poland, Romania)

3.

2nd local currency translation (All countries)

4.

3rd local currency translation (Hungary, Italy, Slovakia , Malaysia) Note set local currency in Company
definition (SPRO)

5.

FX translation to national currency for VAT reporting

countries where local rates are set up for national currency for VAT report at the moment:

Bulgaria BNB

Czech Republic C

Hungary HNB

Italy ECB

Poland NBP

Romania ROB

Slovakia ECB

Switzerland V

Russia NBR

Kazahstan NBKZ

Indonesia ID

Malaysia - MY

6.

FX translation in SD pricing

File Number- 13

Overview of foreign exchange rate types Scenarios & System Settings

1. 1st local currency translation is done on M Global Company corporate monthly exchange rate (All countries
except Bulgaria, Poland, Romania)
SAP Customizing Implementation Guide > Financial Accounting (New) >
Financial Accounting Global Settings (New) > Ledgers > Ledger > Define Currencies of Leading Ledger

Exchange rates are provided in relation to USD therefore USD is used as cross reference when calculating M
rates between different currencies.
These are set under:
SPRO > SAP NetWeaver > General settings > Currencies > Check Exchange Rate Types >

14

File Number- 14

Overview of foreign exchange rate types Scenarios & System Settings

1. 1st local currency translation is done on M Global Company corporate monthly exchange rate (All countries
except Bulgaria, Poland, Romania)
Ratios between different currencies are set in:
SPRO > SAP NetWeaver > General settings >
Currencies > Define Translation Ratios for
Currency Translation:
Exchange rates are stored in a table
that can be Displayed with transaction
ZFI_OB08 or ZFI_EXCHANGE_RATES Display Exchange Rates:

15

File Number- 15

Overview of foreign exchange rate types Scenarios & System Settings

1. 1st local currency translation is done on M Global Company corporate monthly exchange rate (All countries
except Bulgaria, Poland, Romania)

Translations to local currency are done on M rate valid on the posting date of an accounting document as default.

16

File Number- 16

Overview of foreign exchange rate types - Scenarios

2. 1st local currency translation is done on local rates that are alternate to M Global Company corporate
monthly exchange rate (Bulgaria, Poland, Romania)

M rate is set exchange rate type for the 1st local currency translation but local rate type is set as alternate rate type to
translate to local currency in::
SPRO > SAP NetWeaver > General settings > Currencies > Define Translation Ratios for Currency Translation:

Translations to first local currency is

done using the local rate types in accounting
documents in these countries.

17

File Number- 17

Overview of foreign exchange rate types - Scenarios

2. 1st local currency translation is done on local rates that are alternate to M Global Company corporate
monthly exchange rate (Bulgaria, Poland, Romania)

Translations to local currency are done on local rate valid on the posting date of an accounting document as default.
Translation date can be changed to be the document date in case the country code is set in table ZTXA_XREF variable
FI_TRANS_DATE_CTRY (this is the case for Poland, Bulgaria, Hungary and Czech Republic currently)

function module FI_DERIVE_WWERT / BADI

FI_TRANS_DATE_DERIVE was enhanced to
check this variable and use document date
instead of posting date if it is active. (FS is in
BTP folder FI-9004-1163)

18

File Number- 18

Overview of foreign exchange rate types - Scenarios

3. 2nd local currency translation (All countries)

Setting to translate to group currency using P Standard translation for cost planning rate is under the same
configuration step:
SPRO > Financial Accounting (New) >
Financial Accounting Global Settings (New) > Ledgers > Ledger > Define Currencies of Leading Ledger

Additional valuation view in accounting documents (FB03):

19

File Number- 19

Overview of foreign exchange rate types - Scenarios

4.3rd local currency translation (currently Hungary, Italy, Slovakia)

Above 1st and 2nd local currency views the 3rd local currency valuation view is set up for these countries. Reason is the
local exchange rate valuation is legal requirement and the M Global Company corporate rate valuation had to kept as
well.
1st and 2nd local currency valuations and set up are the same as in case the 1 st scenario (M and P rates) in
SPRO > Financial Accounting (New) >
Financial Accounting Global Settings (New) > Ledgers > Ledger > Define Currencies of Leading Ledger.
Additional view for 3rd local currency called Global company currency - is set up in the same step:

For company codes in Italy and Slovakia:

20

For company codes in Hungary:

File Number- 20

Overview of foreign exchange rate types - Scenarios

4.3rd local currency translation (currently Hungary, Italy, Slovakia)

3rd local currency view in accounting documents (FB03):

translation date to 3rd

local curr. is document
date (example for Italy)

1st, 2nd and 3rd local currency valuation views are in GL balance and line item reports. Example
GL Balance report FAGLB03 for Italy:

Local curr. EUR with M rate

Group curr.with P rate
Global comp curr. with ECB rate
21

File Number- 21

Overview of foreign exchange rate types - Scenarios

5. FX translation to national currency for VAT reporting

Standard VAT report S_ALR_87012357 - Advance Return for Tax on Sales/Purchases is run by COTA with Nat.Crcy
Instead of Local Crcy check box active.

Exchange rate type considered here is

Rate type assigned to the country in
SPRO > SAP NetWeaver> General settings >
Set Countries >
Define Countries in mySAP Systems

22

File Number- 22

Overview of foreign exchange rate types - Scenarios

5. FX translation to national currency for VAT reporting

Tax and tax base amounts of an accounting document translated to the national currency is an additional view for tax
data in FB03:

Tax and tax base amounts are displayed in country currency

(this is the national currency for the tax report selection)
Translated with the rate assigned to the country valid
on the tax reporting date*:
(*for tax report date see next page)

23

File Number- 23

Overview of foreign exchange rate types - Scenarios

5. FX translation to national currency for VAT reporting

*
Using the tax report date is country dependent, different in each countries:
-Tax report date is activated for the company code in transaction OBY6 (T001-XVATDATE)
Currency translation for tax (default is translation as per document header)
-Tax report date is document date as default is set in transaction OBCK
-FX rate for national currency translation as per document date - OBY6 (V_T001I) / T001Z-PARTY (param type
LWTKRS)
-Function modules FI_TAX_RATE_DETERMINE_HU / VATDATE_VALUES / BADI_TAX_EXCHANGE_RATE
-Sap notes: 730466, 826855, 1042318, 1580266

24

File Number- 24

Overview of foreign exchange rate types - Scenarios

6. FX translation in SD pricing
Z

Global Company SD pricing exchange rate provided by Treasury / updated at year end /
translate foreign currency amounts to local currency of the company codes in sales documents

NBPC

local exchange rates published by the National Bank of Poland / translate foreign currency amounts
to currency PLN local currency of Poland for rates in in sales documents only

The rates applied in billing documents created out of the sales documents are the determined as per the 1 st local
currency which is generally the M rate or the appropriate alternate local rates for countries Bulgaria, Poland and
Romania

Z or NBPC rates are used in

Sales documents:

25

File Number- 25

FAGL_FC_VAL

Performs foreign currency valuation program using the document splitting characteristics
as well as the fields for the scenarios assigned to the relevant ledgers.
1. the program reads the items that are still open on the key date from customers,
vendors, and G/L accounts
o Open items
o Foreign currency balance sheet accounts, that is, G/L accounts that are managed in a foreign currency

2. determines the balances or documents per currency and account or group and
valuation group, and then, on this basis, it determines the exchange rate type for the
valuation
3. uses the previously determined exchange rate type to valuate items open on the key
date for each invoice reference or account/group and valuates the balances for each
currency and account/group.
4. program posts the determined valuation differences in summarized form.
Outputs: The program creates the following overviews:
Overview of the valuated line items or G/L account balances
Overview of the postings or posting proposals
Overview of the messages issued (separate spool file)

26

File Number- 26

FAGL_FC_VAL

Total of six variants should be setup for this program for each company code.
Main bank Reval: The GL accounts ending with zero that are assigned to the house
bank should be added under the tab G/L Balance in the GL account field. The
Valuate GL Account Balances should be ticked. Two variants are to be setup with the
same settings, one for leading ledger & other for Local ledger.
MNBNKXXXXLD
MNBNKXXXXNLD

Bank Clearing GL Reval: The bank clearing GL accounts corresponding to the house
bank main GL accounts should be added under the tab Open Items in the GL
account field. The Valuate GL Account Balances should be ticked. Two variants are
to be setup with the same settings, one for leading ledger & other for Local ledger.
BNKCLGXXXX-LDN
BNKCLGXXXX-NLDN

Cust/Vend Reval: The Valuate Customer open items & Valuate Vendor open items
should be ticked under the tab open items. Two variants are to be setup with the same
settings, one for leading ledger & other for Local ledger.
DRCRRVLXXXX-LDN
DRCRRVLXXXX-NLDN

For all the above scenarios, copy the settings of existing variant for the tab Postings and
change the company code in the field Batch input session name

27

File Number- 27

Overview of foreign exchange rate types FX revaluation overview

28

File Number- 28