Translating Currencies

In order to translate values from local to group currency, group reporting uses exchange rates from the same transaction currency tables that accounting uses. For example, the M exchange rate type is utilized in accounting while in group reporting, AVG and CLO are typically used.

In the Period Preparation SAP Fiori group, you can:

1. Maintain/display exchange rates.
2. Import exchange rates.

Currency Exchange Rates App: With this app, you maintain exchange rates in the exchange rate table for combinations of exchange rate type, source and target currency, and date.

The following preset exchange rate types are provided with group reporting:

• AVG: Monthly average rate for consolidation
• AVG1: Monthly average rate for budget consolidation
• AVG2: Average rate for consolidation simulation
• CLO: Monthly closing rate for consolidation
• CLO1: Monthly closing rate for budget consolidation
• CLO2: Closing rate for consolidation simulation

Currency translation is run from the data monitor. Currency is translated based on the currency method assigned to each consolidation unit.

The currency translation log displays the values and rates used for the calculations:

1. Currency Translation Key determines whether the periodic or YTD calculation is used.
2. Exchange Rate: The AVG exchange rate is used for movements and the CLO exchange rate is used for opening balance.
3. Reference Exchange Rate: The Reference exchange rate is specified in customizing.

Note

You can right-click on a column in the log such as FS Item and choose the Group option to create subtotals. One or more columns can be grouped.

Note

CT = currency translation key. This is determined in the currency translation method. The following list are the keys that are used the most:

• 1 – Translation of cumulative local values at the exchange rate for the current period
• 5 – Translation of each period at applicable rate for the period
• 6 – No re-translation of existing group currency value

Run currency translation to translate the currency of financial statements from the local currency (LC) into the group currency (GC) so that the financial statements from local companies can be included in the group results.

In reporting, you can easily view the data before and after currency translation by displaying the local and group currency values. Also, it is useful to drill down on the currency translation adjustment (FS item 314800) to see the detail.

It is important to display subitems in currency-related reports because the translation varies for opening balance vs. changes and so forth.

In a scenario where you want to use existing group currency values as-is, you can assign a translation method to the consolidation unit that is configured to not re-translate existing group currency values. In the next example, consolidation unit US## is configured to not re-translate existing group currency values.

In the Example: Use group currency as-Is, the group currency value of 1,248,000 was imported from a file. As you can see in the log and in the report, the value of 1,248,000 is unchanged.

In some business scenarios, it may be required to record values in multiple group currencies. All group currencies can be translated in parallel.

In the example, group currency values for the Canadian subsidiary are displayed on EUR as well as USD. In order to do this, version is added to the columns. Version U## is using the EUR group currency while the V## version is using the USD group currency.