Simulating Currency Translation

Objective

After completing this lesson, you will be able to simulate currency translation

Simulate Currency Translation

At ABC Corporation, the CFO wants to see the current month results translated at last year's exchange rates. This will help them understand the year-over-year change. You need to run currency translation for 12.2022 but with 12.2021 exchange rates. You want to perform this simulation with the same translation method. To perform this simulation, you'll proceed as follows:

  1. Create the X00 exchange rate special version in the X00 extension version.
  2. Record the 12.2021 exchange rates with the AVG2 and CLO2 exchange rate types for 12.2022.
  3. Map exchange rate indicator A to AVG2 for special version X00.
  4. Map exchange rate indicator C to CLO2 for special version X00.
  5. Run currency translation for version X00 in 12.2022.
  6. Report on the results.

Step 1: Create the X00 Exchange Rate Special Version in X00 Extension Version

In the following image, the Exchange Rate special version X00 has been created in the X00 extension version.

Step 2: Record the 12.2021 Exchange Rates with the AVG2 and CLO2 Exchange Rate Types for 12.2022

In the following image, the AVG2 and CLO2 exchange rates are recorded.

Step 3 and 4: Map Exchange Rate Indicator A to AVG2 and C to CLO2 for Special Version X00

In the following image, the mapping for special version X00 is recorded.

Note

In configuration, you need to set your global parameters to the X00 version.

Step 5: Run Currency Translation for Version X00 in 12.2022

In the following image, the currency log for version U00 is displayed.

Note

Because version X00 is programmed to automatically carry out currency translation, it is only necessary to manually run this process for the referenced version, U00.

Step 6: Report on the Results

The following image shows a report with current and prior-year group currency values, both based on the same local currency.

Note

Because version X00 is programmed to automatically carry out currency translation, it’s only necessary to manually run this process for the referenced version, U00.

Configure Currency Simulation

Business Scenario

In this phase of the project, you need to set up a currency translation simulation.

What skills will you develop in this practice exercise?

  • Map the average exchange rate indicator for your extension version
  • Map the closing exchange rate indicator for your extension version

Perform Currency Simulation

Business Scenario

In this phase of the project, you need to run the currency translation simulation.

What skills will you develop in this practice exercise?

  • Run the currency translation task.
  • Create a report to see the simulated results.

Configuration Project Completed!

Congratulation Susan! You have successfully configured SAP S/4HANA Cloud for Group Reporting.

Use this knowledge to further enable yourself as an intermediate business consultant, and feel free to check the following link to gain further insight on the discussed topics:

Group Reporting

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