Exchange Rates are used to define a relationship between two currencies and also to maintain exchange rates that are used to translate an amount into another currency.
You define exchange rates in the system for the following purposes −
Posting and Clearing − To translate amounts posted or cleared in foreign currency, or to check a manually entered exchange rate during posting or clearing.
Exchange Rate Differences − To determine gains or losses from exchange rate differences.
Foreign Currency Valuation − To valuate open items in foreign currency and foreign currency balance sheet accounts as part of the closing operations.
Go to SPRO → SAP Reference IMG → SAP Netweaver → General Settings → Currencies → Enter Exchange Rates → Execute.
Exchange rates can be entered as direct or indirect quotations. In direct quotation, we give multiple of base currency to foreign currency.
Example − 1 USD = 65 × 1 INR
For indirect quotation, it will be 1/65 USD = 1 INR.
In the next window, enter the following details −
After entering the details, click the Save button. Enter the request number and click the tick mark.