Checking Countries and Currencies

Objective

After completing this lesson, you will be able to define countries and currencies

Country Settings

Details for the Country Settings

SAP interface for adjusting global parameters of the USA, including settings for currency, language, tax procedure, decimal and date formats, and address layout, facilitating customization for regional needs.

The preceding figure shows an example of the country settings in the Implementation Guide.

Country-Specific Checks

SAP interface for configuring field checks in Germany, detailing rules for postal code, bank account, and VAT registration number lengths, ensuring compliance with German data format standards and accuracy.

The preceding figure shows the country-specific checks in Implementation Guide.

Note

If a new country has to be created, check for SAP Notes on how the country keys are to be set up. Example: SAP Note 851943 for Serbia.

Exchange Rates

Table showing currency ISO codes and their decimal places and rounding values for USD, GBP, EUR, JPY, and CHF, illustrating key currency specifications essential for accurate financial transactions.

For currency conversions, SAP uses exchange rate types. They enable you to define exchange rates on the same date for various purposes. If necessary, you can define additional exchange rate types.

When documents are posted and cleared, the system uses the exchange rates stored under exchange rate type M (standard translation at average rate) to convert amounts from one currency to another. The exchange rate table must contain at least one entry for all company code currencies in combination with exchange rate type M for the conversion of every foreign currency that you use in your company. The exchange rates apply to all company codes.

If you do not manually enter exchange rates in purchase orders issued in foreign currencies, the SAP system automatically uses the rate stored under type M or the alternative rate type that you have assigned.

You can specify a deviating exchange rate type for certain combinations of currencies. You assign these deviating exchange rate types under Define Translation Ratios for Currency Translation. Note that making changes to the translation ratios after the system has been implemented may cause inconsistencies.

Currency Conversions

Maintenance of Exchange Rates

The following table describes how the system maintains rates for direct and indirect quotations:

Type of QuotationDescription
DirectOne unit of foreign currency is quoted for the local currency.
IndirectOne unit of local currency is quoted for the foreign currency.

The following table shows an example of exchange rate translation between USD and EUR:

Type of QuotationTranslation
DirectUSD 1 = EUR 0.80
IndirectEUR 1 = USD 1.25

Hint

You can also update exchange rates on a daily basis if you receive the information in electronic form. You can use the IDoc  EXCHANGE_RATE or the report RFTBFF00 to do so. SAP Note 1286897 describes how you can get exchange rates from the European Central Bank (ECB).

Expiring Currencies

If countries join the European Currency Union and introduce the Euro as their new currency, you can plan how the system should behave when the old currency is used.

In IMG, under ABAP Platform → General Settings → Currencies → Expiring Currencies you can:

  • Define expiry reasons
  • Define expiring currencies
  • Control through warning and error messages how long an expiring currency can be used
  • Specify special authorizations for expiring currencies
  • Set up the automatic translation for subsequent processes

Currency Conversion

Note

With the app Import Foreign Exchange Rates, you can upload files with foreign exchange rates that you want to import to your SAP S/4HANA system. This app is part of role SAP_BR_TREASURY_SPECIALIST_BOE (Treasury Specialist - Back Office).

How to Determine Exchange Rates

DemoStart Demo

Check Settings for Countries and Currencies

ExerciseStart Exercise

Learning

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