When you build information models, the source data is often expressed in a single currency. Typically, for sales data, this would be the transaction currency at the date of sale.
For reporting purposes however, it is often necessary to convert the currencies. The purposes can include (but are not limited to) the following:
When using a global reporting currency in corporate reporting, all values should be displayed in the global reporting currency.
For example, the US region might want to see European figures in USD.
You might want to analyze the effects of currency gains and losses.
Data conversion is a strong requirement in multicurrency general ledger transactions.
Due to the permanent fluctuation of currency exchange rates, you have to define a smart conversion process and, in particular, define which date must be considered to define the conversion rate to apply.
This requirement is even stronger when the source or target currency is volatile.
SAP HANA Cloud supports currency conversion. The key elements provided by SAP HANA Cloud are:
A set of tables to store master data about currencies, exchange rate types, and the exchange rate values.
A semantic typeAmount with Currency which you set for the measure you want to convert.
Calculation view settings to define, for each measure, how the conversion should be processed (which rate and conversion dates should be applied, where to find the source and target currency).