Global SAP Implementation

Case Study for Exchange

rate setups
Overview

Global SAP FI CO Lead

 Overview of foreign exchange rate types

1. Overview

2. List of exchange rate types used

3. Sources and upload of different exchange rates

4. Scenarios & System settings

5. Foreign exchange revaluation overview

2 File Number- 2
 Overview of foreign exchange rate types – overview

•Leading ledger of company codes are managed in local currency of the country of the company code.

•Corporate monthly exchange rate published by Reuters are applied to translate foreign currency amounts to
local currency. Certain countries are exempts (Bulgaria, Poland, Romania).

These countries are using the local rates published by the National Bank of the country to translate to local currency
instead of Global Company Corporate monthly rate. Local exchange rate types are set up as alternate rate type to the
Global Company corporate monthly exchange rate when translating to local currency in these countries.

•Additional views available for parallel fx valuations –

2nd local currency - group currency USD using Global Company corporate yearly exchange rate - this is available for
all company codes.

3rd local currency - global company currency using European Central Bank Daily rate or local rates published by the
National Bank of a country - available in certain countries (Hungary, Italy, Slovakia).

•Local exchange rate types published by the local national banks are assigned to certain countries to prepare
VAT report in national currency

•There are monthly FX revaluation jobs to revaluate AP/AR open items and GL balances using Global Company
corporate monthly exchange rate into the leading ledgers. Same monthly revaluations are done into local
ledgers by using local exchange rate types of the country.

3 File Number- 3
 Overview of foreign exchange rate types – List of exchange rate types used

Exchange rate types used – (OB07)

‘M’ Global Company Corporate Monthly Rates provided by Treasury / published by Reuters /
translate foreign currency amounts to local currency of the company codes in accounting documents /

‘P’ Global Company std translation for cost planning provided by Treasury / updated at year end /
translate foreign currency amounts to group currency (USD) in accounting documents

‘Z’ Global Company SD pricing exchange rate provided by Treasury / updated at year end /
translate foreign currency amounts to local currency of the company codes in sales documents

‘BNB’ Daily local exchange rates published by the Bulgarian National Bank / translate foreign currency amounts
to currency BGN – local currency of Bulgaria – 1st local currency and VAT reporting in national currency

‘C’ Daily local exchange rates published by the National Bank of Czech Republic / translate foreign currency
amounts to currency CZK – local currency of Czech Republic for VAT reporting in national currency
purpose only

‘ECB’ Daily Fx rates published by the European Central Bank Daily / translate foreign currency amounts to
currency EUR for valuation view for 3rd local currency in Slovakia and Italy and VAT reporting in national
currency purpose

‘HNB’ Daily local exchange rates published by the Hungarian National Bank / translate foreign currency amounts
to currency HUF – local currency of Hungary – for valuation view for 3rd local currency and VAT reporting
in national currency

4 File Number- 4
 Overview of foreign exchange rate types - List of exchange rate types used

Exchange rate types used – OB07

‘NBP’ Daily local exchange rates published by the National Bank of Poland / translate foreign currency amounts
to currency PLN – local currency of Poland – 1st local currency and VAT reporting in national currency

‘NBPC’ local exchange rates published by the National Bank of Poland / translate foreign currency amounts
to currency PLN – local currency of Poland – for rates in in sales documents only

‘ROB’ Daily local exchange rates published by the National Bank of Romania / translate foreign currency
amounts to currency RON – local currency of Romania – 1st local currency and VAT reporting in national
currency

‘V’ Monthly local exchange rate published by the Swiss tax authorities / translate foreign currency amounts to
currency CHF for VAT reporting purposes

ID Indonesia Tax Exchange Rate - Monthly local exchange rate published by the Indonesian tax authorities /
translate foreign currency amounts to currency IDR for VAT reporting purposes

NBKZ Daily local exchange rates published by the National Bank of Kazakhstan / translate foreign currency
amounts to currency KZT– 1st local currency and VAT reporting in national currency

NBR Daily local exchange rates published by the National Bank of Russia / translate foreign currency
amounts to currency RUB– 1st local currency and VAT reporting in national currency

5 File Number- 5
 Overview of foreign exchange rate types - List of exchange rate types used

Exchange rate types used – OB07

BNM Monthly local exchange rate published by the National Bank of Malaysia / translate foreign currency
amounts to currency MYR for VAT reporting purposes

NBUA National Bank of Ukraine (Not Live)

RSB Serbian National Bank FX rate (Not Live)

A Corporate A02 Rates(Mth. End Av.)

AS01 Treasury AS01 for M-end revaluation

D Corporate daily rates

CBEA Central Bank of Turkey Effective Buying

CBES Central Bank of Turkey Effective Selling

CBMX Central Bank of Mexico

CBTA Central Bank of Turkey Buying rate

CBTS Central Bank of Turkey Selling rate

6 File Number- 6
 Overview of foreign exchange rate types - List of exchange rate types used

Exchange rate types used – OB07

ID Indonesia Tax Exchange Rate

7 File Number- 7
 Overview of foreign exchange rate types – Sources and upload of different exchange rates

Rate type Source Load When IT Technical

Checks Accounting
Validation
M Global Company http://treasury.Glo -Interface using Idoc Loaded on the Support GA
corporate monthly bal EXCHANGE_RATE01 last Thursdays, team Manager/
exchange rate Company.com:90 valid from the last
00/treasury/fxrate day of a period
s/ -Job: (Saturday)
A Corporate A02 CPSFIEM00000REUTFX
Rates (Mth. End
Av.)
- Files loaded are stored in
D Corporate daily Unix folder /interf/BRP>900>
rates Finance > Interfaces >
Reuters_FX > Complete-
Archive
P Global Company During period CPS Not required
std translation for December / valid
cost planning from January
next year
Z Global Company During period CPS Not required
SD pricing December / valid
exchange rate from January
next year

BNB rate for http://www.bnb.bg/ load by CapGemini who daily after 13:00 Support GA
Bulgaria Statistics/StExterna downloads the file from the GMT team Manager/
lSector/StExchang web, saves to Unix foder
eRates/StERForeig and load by transaction
nCurrencies/index. ZFI_LOAD_FX_
htm?toLang=_EN&
toLang=_EN

Download
8 http://www.bnb.bg/ File Number- 8
 Overview of foreign exchange rate types – Sources and upload of different exchange rates

Rate type Source Load When IT COTA

Checks Validation
C rate for Czech http://www.cnb.cz Autosys / prg Schedule daily Support GA
Republic /en/financial_mar ZFI_LOAD_FX 15:30/16:00 GMT team Manager/
kets/foreign_exch Job BRP-C- CapGemini
ange_market/exc CPSFIEM00002FXCNB1
hange_rate_fixing
/daily.txt?date=dd
.mm.yyyy
ECB rate for Italy http://www.ecb.int Autosys / prg RFIMPNBS Schedule daily Support GA
and Slovakia /stats/exchange/e 17:00 GMT team Manager/
urofxref/html/inde CapGemini
x.en.html Job: BRP-C-
CPSFIEM00000FXECB1

HNB rate for http://www.mnb.h Definitely still manual Working day Gennpact GA
Hungary u/Root/Exchange loaded by Cap, (we do after 18:00 GMT Manager/
Rate/arfolyam.xls have a job on hold but it is CapGemini
x not programmed)
(new link!)
Also see ZFI_LOAD_FX_
http://www.mnb.h HNB format must be in txt
u/en/arfolyamok HNB_YYYYMMDD.txt

NBP rate for http://www.nbp.pl Autosys / prg Schedule daily Support GA

Poland /home.aspx?f=/ku ZFI_LOAD_FX at 15:00 GMT team Manager/
rsy/kursy_wiecej. CapGemini
html
Job: BRP-C-
CPSFIEM00004FXCNB12
9 File Number- 9
 Overview of foreign exchange rate types – Sources and upload of different exchange rates

Rate type Source Load When IT checks COTA

Validation
NBPC rate for http://www.nbp.pl/ Autosys / prg Schedule daily Support GA
Poland home.aspx?f=/kur ZFI_LOAD_FX 14:00 GMT team Manager/
sy/kursy_wiecej.ht Job: BRP-C- CapGemini
ml CPSFIEM00005FXCNB1

ROB rate for http://www.bnr.ro/E Autosys / prg Schedule daily Support GA

Romania xchange-rates- ZFI_LOAD_FX 19:00 GMT team Manager/
1224.aspx CapGemini
Job: BRP-C-
CPSFIEM00006FXCNB1

V rate for http://www.estv.ad Autosys / prg Scheduled Support GA

Switzerland min.ch/mwst/diens ZFI_LOAD_FX Monthly on last team Manager/
tleistungen/00304/ Friday 14:30h CapGemini
00308/00692/inde GMT
x.html?lang=de Job: BRP-C-
CPSFIEM00003FXCNB

Indonesia http://www.depke load by CapGemini who Schedule daily Support GA

u.go.id/ind/Curre downloads the file from to be defined team Manager/
ncy/ the web, saves to Unix Genpact
folder and load by
transaction
ZFI_LOAD_FX_

10 File Number- 10
 Overview of foreign exchange rate types – Sources and upload of different exchange rates

Rate type Source Load When IT Checks COTA

Validation
Kazahstan http://www.nation Autosys / prg Schedule daily Support GA
albank.kz/?furl=c ZFI_LOAD_FX 9:00 MST team Manager/
ursFull&switch=e CapGemini
ng

Russia http://cbrates.rbc Autosys / prg Schedule daily Support GA

.ru/tsv/978/2012/1 ZFI_LOAD_FX 8:30 MST team Manager/
1/05.tsv where CapGemini
978 stands for
the iso code of
the currency
(check key in
TCURC table)
978 = EUR
Malaysia http://www.bnm.g load by CapGemini who Rates updated Support GA
ov.my/?tpl=excha downloads the file from team Manager/
on the website
ngerates the web, saves to Unix Genpact
folder and load by at 1130 MST
transaction
ZFI_LOAD_FX_

11 File Number- 11
 Overview of foreign exchange rate types – Sources and upload of different exchange rates

Rate type Source Load When IT Checks COTA

Validation
Turkey http://www.tcmb. Autosys / prg Rates are Support GA
gov.tr/kurlar/toda ZFI_LOAD_FX published after team Manager/
y.xml CapGemini
15:30 Hours
Turkey time
every day.
Exchange rate
types CBEA,
CBES, CBTA,
CBTS need to
be loaded in
SAP on a daily
basis.

Mexico

12 File Number- 12
 Overview of foreign exchange rate types – Scenarios & System Settings

Scenarios:

1. 1st local currency translation is done on ‘M’ Global Company corporate monthly exchange rate (All
countries except Bulgaria, Poland, Romania)

2. 1st local currency translation is done on local rates alternate to ‘M’ Global Company corporate monthly
exchange rate (Bulgaria, Poland, Romania)

3. 2nd local currency translation (All countries)

4. 3rd local currency translation (Hungary, Italy, Slovakia , Malaysia) Note set local currency in Company
definition (SPRO)

5. FX translation to national currency for VAT reporting

countries where local rates are set up for national currency for VAT report at the moment:
• Bulgaria – BNB
• Czech Republic – C
• Hungary – HNB
• Italy – ECB
• Poland – NBP
• Romania – ROB
• Slovakia – ECB
• Switzerland – V
• Russia – NBR
• Kazahstan – NBKZ
• Indonesia – ID
• Malaysia - MY

13 6. FX translation in SD pricing File Number- 13

 Overview of foreign exchange rate types – Scenarios & System Settings

1. 1st local currency translation is done on ‘M’ Global Company corporate monthly exchange rate (All countries
except Bulgaria, Poland, Romania)

SAP Customizing Implementation Guide > Financial Accounting (New) >

Financial Accounting Global Settings (New) > Ledgers > Ledger > Define Currencies of Leading Ledger

Exchange rates are provided in relation to USD therefore USD is used as cross reference when calculating M
rates between different currencies.

These are set under:

SPRO > SAP NetWeaver > General settings > Currencies > Check Exchange Rate Types >

14 File Number- 14
 Overview of foreign exchange rate types – Scenarios & System Settings

1. 1st local currency translation is done on ‘M’ Global Company corporate monthly exchange rate (All countries
except Bulgaria, Poland, Romania)

Ratios between different currencies are set in:

SPRO > SAP NetWeaver > General settings >
Currencies > Define Translation Ratios for
Currency Translation:
Exchange rates are stored in a table
that can be Displayed with transaction
ZFI_OB08 or ZFI_EXCHANGE_RATES -
Display Exchange Rates:

15 File Number- 15
 Overview of foreign exchange rate types – Scenarios & System Settings

1. 1st local currency translation is done on ‘M’ Global Company corporate monthly exchange rate (All countries
except Bulgaria, Poland, Romania)

Translations to local currency are done on ‘M’ rate valid on the posting date of an accounting document as default.

16 File Number- 16
 Overview of foreign exchange rate types - Scenarios

2. 1st local currency translation is done on local rates that are alternate to ‘M’ Global Company corporate
monthly exchange rate (Bulgaria, Poland, Romania)

‘M’ rate is set exchange rate type for the 1st local currency translation but local rate type is set as alternate rate type to
translate to local currency in::

SPRO > SAP NetWeaver > General settings > Currencies > Define Translation Ratios for Currency Translation:

Translations to first local currency is

done using the local rate types in accounting
documents in these countries.

17 File Number- 17
 Overview of foreign exchange rate types - Scenarios

2. 1st local currency translation is done on local rates that are alternate to ‘M’ Global Company corporate
monthly exchange rate (Bulgaria, Poland, Romania)

Translations to local currency are done on local rate valid on the posting date of an accounting document as default.

Translation date can be changed to be the document date in case the country code is set in table ZTXA_XREF variable
FI_TRANS_DATE_CTRY (this is the case for Poland, Bulgaria, Hungary and Czech Republic currently)

function module FI_DERIVE_WWERT / BADI

FI_TRANS_DATE_DERIVE was enhanced to
check this variable and use document date
instead of posting date if it is active. (FS is in
BTP folder FI-9004-1163)

18 File Number- 18
 Overview of foreign exchange rate types - Scenarios

3. 2nd local currency translation (All countries)

Setting to translate to group currency using ‘P’ Standard translation for cost planning rate is under the same
configuration step:

SPRO > Financial Accounting (New) >

Financial Accounting Global Settings (New) > Ledgers > Ledger > Define Currencies of Leading Ledger

Additional valuation view in accounting documents (FB03):

19 File Number- 19
 Overview of foreign exchange rate types - Scenarios

4.3rd local currency translation (currently Hungary, Italy, Slovakia)

Above 1st and 2nd local currency views the 3rd local currency valuation view is set up for these countries. Reason is the
local exchange rate valuation is legal requirement and the ‘M’ Global Company corporate rate valuation had to kept as
well.

1st and 2nd local currency valuations and set up are the same as in case the 1 st scenario (M and P rates) in

SPRO > Financial Accounting (New) >

Financial Accounting Global Settings (New) > Ledgers > Ledger > Define Currencies of Leading Ledger.

Additional view for 3rd local currency – called ‘Global company currency’ - is set up in the same step:

For company codes in Italy and Slovakia: For company codes in Hungary:

20 File Number- 20
 Overview of foreign exchange rate types - Scenarios

4.3rd local currency translation (currently Hungary, Italy, Slovakia)

3rd local currency view in accounting documents (FB03):

translation date to 3rd

local curr. is document
date (example for Italy)

1st, 2nd and 3rd local currency valuation views are in GL balance and line item reports. Example
GL Balance report FAGLB03 for Italy:

Local curr. EUR with M rate

Group curr.with P rate
Global comp curr. with ECB rate
21 File Number- 21
 Overview of foreign exchange rate types - Scenarios

5. FX translation to national currency for VAT reporting

Standard VAT report S_ALR_87012357 - Advance Return for Tax on Sales/Purchases is run by COTA with ‘Nat.Crcy
Instead of Local Crcy’ check box active.

Exchange rate type considered here is

Rate type assigned to the country in
SPRO > SAP NetWeaver> General settings >
Set Countries >
Define Countries in mySAP Systems

22 File Number- 22
 Overview of foreign exchange rate types - Scenarios

5. FX translation to national currency for VAT reporting

Tax and tax base amounts of an accounting document translated to the national currency is an additional view for tax
data in FB03:

Tax and tax base amounts are displayed in country currency

(this is the national currency for the tax report selection)
Translated with the rate assigned to the country valid
on the tax reporting date*:
(*for tax report date see next page)

23 File Number- 23
 Overview of foreign exchange rate types - Scenarios

5. FX translation to national currency for VAT reporting

*
Using the tax report date is country dependent, different in each countries:

-Tax report date is activated for the company code in transaction OBY6 (T001-XVATDATE)

Currency translation for tax (default is translation as per document header)

-Tax report date is document date as default is set in transaction OBCK

-FX rate for national currency translation as per document date - OBY6 (V_T001I) / T001Z-PARTY (param type
LWTKRS)

-Function modules FI_TAX_RATE_DETERMINE_HU / VATDATE_VALUES / BADI_TAX_EXCHANGE_RATE

-Sap notes: 730466, 826855, 1042318, 1580266

24 File Number- 24
 Overview of foreign exchange rate types - Scenarios

6. FX translation in SD pricing

‘Z’ Global Company SD pricing exchange rate provided by Treasury / updated at year end /
translate foreign currency amounts to local currency of the company codes in sales documents

‘NBPC’ local exchange rates published by the National Bank of Poland / translate foreign currency amounts
to currency PLN – local currency of Poland – for rates in in sales documents only

The rates applied in billing documents created out of the sales documents are the determined as per the 1 st local
currency which is generally the ‘M’ rate or the appropriate alternate local rates for countries Bulgaria, Poland and
Romania

‘Z’ or ‘NBPC’ rates are used in

Sales documents:

25 File Number- 25
 FAGL_FC_VAL

Performs foreign currency valuation program using the document splitting characteristics
as well as the fields for the scenarios assigned to the relevant ledgers.
1. the program reads the items that are still open on the key date from customers,
vendors, and G/L accounts
o Open items
o Foreign currency balance sheet accounts, that is, G/L accounts that are managed in a foreign currency
2. determines the balances or documents per currency and account or group and
valuation group, and then, on this basis, it determines the exchange rate type for the
valuation

3. uses the previously determined exchange rate type to valuate items open on the key
date for each invoice reference or account/group and valuates the balances for each
currency and account/group.

4. program posts the determined valuation differences in summarized form.

Outputs: The program creates the following overviews:
• Overview of the valuated line items or G/L account balances
• Overview of the postings or posting proposals
• Overview of the messages issued (separate spool file)

26 File Number- 26
 FAGL_FC_VAL

Total of six variants should be setup for this program for each company code.
• Main bank Reval: The GL accounts ending with zero that are assigned to the house
bank should be added under the tab “G/L Balance” in the GL account field. The
“Valuate GL Account Balances” should be ticked. Two variants are to be setup with the
same settings, one for leading ledger & other for Local ledger.
MNBNKXXXXLD
MNBNKXXXXNLD
• Bank Clearing GL Reval: The bank clearing GL accounts corresponding to the house
bank main GL accounts should be added under the tab “Open Items” in the GL
account field. The “Valuate GL Account Balances” should be ticked. Two variants are
to be setup with the same settings, one for leading ledger & other for Local ledger.
BNKCLGXXXX-LDN
BNKCLGXXXX-NLDN
• Cust/Vend Reval: The “Valuate Customer open items” & Valuate Vendor open items”
should be ticked under the tab open items. Two variants are to be setup with the same
settings, one for leading ledger & other for Local ledger.
DRCRRVLXXXX-LDN
DRCRRVLXXXX-NLDN

For all the above scenarios, copy the settings of existing variant for the tab “Postings” and
change the company code in the field “Batch input session name”

27 File Number- 27
 Overview of foreign exchange rate types – FX revaluation overview

28 File Number- 28