Name: Managing EBRR Currency Conversion in SAP S/4HANA Cloud – PET 2026
Uploaded: 2026-6-10
Duration: 653 s

Share feedback

<p>We are aware of intermittent issues in accessing the learning content</p>

We are aware of intermittent issues in accessing the learning content

Personalize your learning.

Why create an SAP account?

Enhance your learning experience

SAP Learning

Choose your subscription

Manage your subscription

Activate your subscription

Live Sessions

Hands-on Practice

Certification

My Learning

Ready to start learning?

This browser is not supported

Show more

Ooops, something went wrong!

Oh no! Tell us how we can improve.

Great! We value your feedback

Thank you!

Browse by capability

Please wait

Please try again later

Sorry, we encountered an error

Try again or reset results to continue browsing

We didn't find what you're looking for

To continue, please log in

Your session has timed out

Validate your skills and learning by completing the certification exam and gain a highly recognised accreditation.

Book your certification exam

Complete the assessment to validate your SAP PartnerEdge competency qualifications.

Ready to take your assessment?

Learn about the key features and essentials in the latest release to help you prepare for the Stay Certified assessment.

Prepare for assessment

Learn new skills you need at your own pace with our bite-sized lessons.

Prepare for certification

In your My Learning account you can view your certification and learn how to take your Stay Certified assessment.

Ready to take your Stay Certified assessment?

Get tailored answers, tune into podcasts, and dive deeper with interactive study guides, mind maps, FAQs and more.

Upskill faster with AI-powered assistance

Upgrade to AI-powered learning

Enroll to Google NotebookLM to flexibly interact with SAP Learning content. It's free and activates instantly.

You are all set. Google NotebookLM is now active. You will have access to AI powered learning for all our eligible courses.

Enrollment successful!

Get started with AI-powered learning

Explore {title} at SAP Learning. Find out more!

Assessment

Course Completion

Knowledge Badge

Overview

Support Resource

Certification Exam

Theoretical Exam

Schedule

External Course

Practical Exercise

Practical Test

External Hands-On

External Resource

Learning Journey

Learning Journey Assessment

Lesson

Live Session

Practice System

Hands-on Practice for {title}

Quiz

Scenario Based Assessment

Course Assessment

Course

SAP Expert Lectures

Stay Certified

Subscription

System Based Assessment

Unit

Video

Video Playlist

Week

Want to remove this from your Learning List?

You have until July 30, 2026 to complete your Stay certified assessment.

Your SAP Certification extension is now active!

Your exclusive access to the SAP Learning Hub, Event Edition is ready. <link>Start learning now.</link>

Access activated

You can now register for free Live Sessions.

<div><div><div><div><div><div><div><div><div><div>SAP Business Suite Product Expert Training (PET) H1 2026 / Finance and risk / SAP Cloud ERP / SAP S/4HANA Cloud Public Edition / Finance<br><br>In this video, you will learn how to manage event-based revenue recognition (EBRR) currency conversions using a spot rate approach in SAP S/4HANA Cloud. It introduces a new revenue recognition key, which offers an alternative method for fixed-price customer projects by converting currencies at the period rate when revenue is realized. Through a side-by-side comparison, the session demonstrates how this new period-rate approach operates differently from the traditional frozen-rate method (SPFC). Additionally, a step-by-step system demo illustrates how actual time postings, customer invoices, and period-end closing tasks calculate and track currency effects under varying exchange rates.<br><br>Ask your questions in our <a target="_blank" rel="nofollow noopener noreferrer" href="https://community.sap.com/t5/enterprise-resource-planning-q-a/qa-p/erp-questions">community</a> using the PET_Enablement tag under “Question User Tags.” <br><br>Here is the <a target="_blank" rel="nofollow noopener noreferrer" href="https://d.dam.sap.com/a/u9Nj8Dn/Managing_EBRR_Currency_Conversion_Using_a_Spot_Rate_Approach.pdf?rc=10&inline=true&doi=SAP1319325">slide deck</a>.<br><br>Please note that captions have not been edited.</div></div></div></div></div></div></div></div></div></div>

Managing EBRR Currency Conversion in SAP S/4HANA Cloud – PET 2026

Welcome to this product expert session. In today's video, we will show a new spot rate currency conversion in event-based revenue recognition. With 2508, SAP released a new revenue recognition key, SPFCFX, an alternative to SPFC, the standard revenue recognition key for fixed price customer projects. hybris our standard disclaimer. My name is Jens Klawode and I'm part of the CloudELP product success team in North America. We will start with an overview and a simple example comparing to two different RefREC keys, SPFC and SPFCFX. We will then jump into the demo and walk you through an example in the system. With 2508, we introduced a revenue recognition key that converts at the period rate when revenue is realized. It's designed for foreign currency projects with steady one -direction exchange rate moves and it supports IFRS and US GAAP. The default method, which uses a frozen rate, still works. It challenges to choose wisely. Use the new key when FX shifts are material. Otherwise, wait transparency and operational effort when deciding on which method to use. hybris a quick comparison. Under SPFC, we keep the frozen rate from the billing WBS creation date. For example, 1200 USD recognized in period 1 becomes 19,200 Mexican pesos. With the new method, we use the current rate, which is valid at the beginning of the period, when the revenue is posted, so the same 1200 US dollar is recognized at 24,000 Mexican pesos. Let's now jump into the demo and walk through a simple example to see how the new revenue recognition key works. We start our demo with a fixed price cost-based POC project. The project was created for service organization Mexico, which means the company code currency is Mexican pesos. However, the project currency, as you can see below here, is maintained in U.S. Dollar. We assigned a billing WBS element to our new revenue recognition key, SPFCFX. The system is using two different exchange rate types in our example. For planning, it's using rate type P, and for actual postings, it's using rate type M. Here you can see the exchange rate US dollar to Mexican pesos, which we will be using for the planning part of our project. We did preload planned data of 6,250 US dollar in cost and 12,000 US dollars in revenue. The system then uses the P rates to convert these values into the company code currency, as you can see here. This gives us planned cost of 100,000 Mexican pesos and planned revenue of 192,000 Mexican pesos. Before we come to our first time posting, I want to show you the exchange rate the system will use for the currency conversion here. For actual postings, the system uses rate type M. For simplification, we kept the M-Rate for May the same as the P-Rate, as 1 USD equals 16 Mexican Pesos. Now we are going to post time against the project for the P-Rate of May. We already have here our sending cost center, our activity type, senior consultant. We now enter our receiving WBS PET demo. and we do want to post 10 hours the cost rate maintained in a system is 1,000 Mexican pesos for for one hour this means we are posting 10,000 Mexican pesos is actually cost in the system set create Here you can see we posted 10 hours, the CDE amount and transaction currency, 10,000 Mexican pesos. Next, we look at the display line item reports to analyze the posting in detail. The POC is extra cost to date over plant cost, meaning 10 ,000 Mexican pesos extra cost divided divided by 100,000 Mexican pesos of our plant cost equals a PLC of 10%. The realized revenue for this posting is 10% of the plant revenue, so $1,200, which you see here posted as accrued revenue. with May's exchange rate at $1.00 equals 16 Mexican pesos, that translates into 19,200 Mexican pesos, which you see here. Before we create our second time posting and our first customer invoice, I first want to show the exchange rate again. In June, we have two M-Rates, 1 USD equals 20 Mexican pesos on June 1st and 1 USD equals 25 Mexican pesos on June 15th. We will make our second time posting and the first customer invoice both on June 15th. However, the transactions will generate postings using different exchange rates. The new ref-rate key SPFCFX translates realized revenue using the rate valid at the first day of the posting period while invoices use the daily m rate on the posting date for the second time posting we again post 10 hours against our project the only thing different here now is the posting dates which we as mentioned earlier will force at june 15 you can see 10 hours posted again 10 000 mexican pesos Here is another look at the display line item report after our second time posting. Under posting date June 15, we can see another 10 hours were posted, 10,000 Mexican pesos. The POC for this posting is again 10%, so the realized revenue is again 1200 USD. Because SPF CFX uses the first day of the period, it did use an exchange rate of 1 USD equal to 20 Mexican pesos to translate from US dollar to Mexican pesos, residing in 24,000 Mexican pesos in company code currency for realized revenue for this posting. We are now creating our first customer invoice for $1,500 USD, clicking here on submit, create the billing document request, select the document, making sure it can influence the billing date. The billing date should again be June 15. You can see the billing date is June 15. I'm going to save this and the invoice is posted. Now we look at the report once again to analyze our posting. You can see that $1500 USD of deferred revenue was posted. Invoices used the daily M -rate to determine the exchange rate, so the system did use 1 USD equal to 25 Mexican pesos, which was valid on June 15 for this posting, resulting in 37,500 Mexican pesos. Now it's time for the period end close. We already did execute the period end job and are now looking at the results in the display line items report. EBR is letting deferred and accrued revenue and disposing currency effects. Since in our example, the time posting of $2400 USD exceeds the invoice amount of $1500, we can reduce the deferred revenue by reducing the VIP. The first VIP reduction is using the $1200 USD VIP booked in May, which equals 19,200 Mexican pesos. This leaves 300 USD deferred, which need to come out of the 1200 USD VIP booked in June. Since the exchange rate changed in June, the 300 USD equals 6000 Mexican pesos. You see that VIP and deferred revenue both were reduced by 1500 in transaction currency, but by different amounts in the company code currency. The difference is posted as currency effect. The currency effect is posted using a dedicated slali type 820001. This ensures full transparency, allowing you to report on currency effects at any time. Finally, we did set the project status to complete. After the June netting, the remaining is 900 USD from June. At an exchange rate of 1 USD equal to 20 Mexican pesos, this is about 18,000 Mexican pesos. It's important to note that the currency effect balance are not reversed at completion. As a result, it is no longer enough to look at build revenue alone. To get the full revenue picture, you now need to combine build revenue and revenue adjustment offset by the amount on the CurrencyEffect account. That brings us to the end of this demo. To continue your learning journey, explore the SAP resources shown on the screen. New expert videos are added every Friday. If you have questions or feedback, please reach out to the email address on the screen.