SAP FI - Exchange Rates

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.

Enter Exchange Rates

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.

How to create direct/indirect quotation in SAP FI?

Direct/Indirect Quotation

In the next window, enter the following details −

  • Exchange Rate Type.
  • Valid From date that is the start date from which the rates are applicable.
  • First Currency.
  • Quotation Rate.
  • Second Currency.
Direct/Indirect Quotation Detail

After entering the details, click the Save button. Enter the request number and click the tick mark.

Enter Request Number