How to Maintain Currency Exchange Rates in SAP S4 Hana

How to Maintain Exchange Rates in SAP

Maintaining the exchange rates in SAP system is one of the important activities that we need to maintain in the SAP for the foreign currency transactions. This activity also can be done by the end users by using the transaction code S_BCE_68000174. Note: Currency exchange rates are maintained at client level, so exchange rates are applicable all the company codes that are defined under the client. The exchange rates in SAP are maintained as the direct quotation or indirect quotation.

• Direct Quotation: As per the direct quotation, 1 unit of foreign currency is given in a local currency. For e.g. Local Currency = INR, Foreign Currency= USD, as per the direct quotation, 1 USD = 80 INR
• Indirect Quotation: As per the indirect quotation, 1 unit of local currency is given in a foreign currency. For, e.g. Local Currency = INR, Foreign Currency =USD, as per indirect quotation, 1 INR = 0.0125 USD.

Based on the exchange rates that are defined in the SAP system, the system automatically converts the foreign currency into the local currency, leading and non leading currencies. Scenario 1: Local Currency: INR, Foreign Currency: USD

• The exchange rate values quoted as 1 USD = 80 INR on 30th Oct, 2022
• We have the received, the vendor invoice for $200 on 1st September, 2022
• The vendor invoice with a value of $200 has been posted on 1st Septment, 2022 in the SAP using the transaction code FB60.
• Now the system automatically converts the foreign currency values to the local currency with a value of 16000 INR based on the exchange rates that has been maintained in the SAP system.
• The system automatically picks exchange values that have been updated on the latest date.

Scenario 2: How much frequency company maintains the exchange rates values

• Based on the flow of foreign currency transaction, the company maintains exchange rate values
• Frequencies of updating exchange rates in SAP can be daily basis or weekly basis or For thnigh basis or Monthly basis.
•  Exchange rates can be maintained from the customization screen using t-code OB08 and end users also can define the exchange rates using the t-code S_BCE_68000174.

How to Maintain Currency Exchange Rates in SAP S4 Hana System

It is a both SAP consultant and an end user work. If you are an SAP consultant and maintaining the exchange rate values, the following are the prerequisite that to be configured in SAP system.

1. Define standard quotation for exchange rates
2. Check exchange rate types
3. Define translation ratios for currency translation

Configuration steps

• IMG path: SIMG > ABAP Platform > General Settings > Currencies > Maintain Exchange Rates
• Transaction code: OB08, S_BCE_68000174 (End-User Tcode)

In this scenario: we are going to update the following currency exchange rates in SAP as the direct quotation.

Exchange Rate type	Valid From	From	Direct Quotation	To
G (Bank Buying rate)	21.10.2022	USD	83	INR
B (Bank Selling rate)	21.10.2022	USD	80	INR
M (Average Rate)	21.10.2022	USD	82	INR
G (Bank Buying rate)	21.10.2022	EUR		INR
B (Bank Selling rate)	21.10.2022	EUR		INR
M (Average rate)	21.10.2022	EUR		INR

Step 1: Excute the T-Code “OB08” or “S_BCE_68000174” in the SAP command field and enter to continue Step 2: On change view “Currency Exchange Rates”: overview screen, click on ‘new entries’ button. Step 3: On the new entry screen, update the currency exchange rates as per your requirements. Click on save button and save the maintained exchange rate values in the SAP S4 Hana system. Scenario: Once you click on the save icon, the maintained exchange rate values get saved in the SAP system and the system won’t generate the TR (Transport Request) number. So the end-user also can maintain the currency exchange rate values on a daily basis, weekly basis or monthly basis as per the requirements of an organization. 

Also Read | Currency Exchange Rates S4HANA