How to Maintain Currency Exchange in SAP S4 Hana

How to Maintain Currency Exchange in SAP S4 Hana.

In this blog, we guide you through the step-by-step process of ‘Maintenance of Currency Exchange’ in SAP S/4HANA. Topics to be covered are:

• Check the Currency Translation Exchange Rate Type, T code: OB07
• Creation of Currency Translation Ratio in T code: OBBS
• Creation of Currency Exchange Rates in T code: OB08

1. Currency Translation Exchange Rate Type, T code: OB07

Go to T code: OB07.

The following are the standard Exchange Rate Types available in SAP.

• M – Average Rate: This is by default rate. If we did not maintain any exchange rate for Account type (S, K, D, A etc) in T code: OBA7, by default “M” will applicable.
• B – Bank Selling Rate: When purchasing goods or services from a foreign vendor, they typically request payment in their local currency (USD). To facilitate this transaction, we need to buy the required foreign currency from a bank, which sells it to us.
• G – Bank Buying Rate: When selling goods or services to a foreign customer, they pay us in their local currency. To convert this payment to our local currency, we sell the foreign currency to a bank, which buys it from us.

We’ll use existing exchange rate types, noting that new ones can be created if required.

2. Create Currency Translation Ratio in T code: OBBS

In this blog, we will focus on “Exchange rate type M”.

Go to T code: OBBS

Click on New Entries button.

Now give all the details like below:

• Translation ratio: 1USD = 1INR for Average rate (M).

Note: Likewise we can create for other Exchange rate types (B – Bank selling rate, G – Bank buying rate).

Click on save.

Customizing request popup will come, select your request and click on continue.

Data was saved.

3. Create Currency Exchange Rates in T code: OB08

Go to T code: OB08.

Click on New Entries.

In two different ways we can maintain Exchange rates in OB08, whatever is fine.

• Direct Quoted Exchange rate: 1 USD = 82 INR

• In-Direct Quoted Exchange rate: 1 INR = 0.012 USD

Click on save button.

Data was saved.

We will assign the exchange rate type to each account type SA, KR, KA, KZ, DR, DZ etc. in T code: OBA7.

How to Maintain Currency Exchange in SAP S4 Hana

SAP FICO – Sub modules:

• SAP Finance Enterprise structure: Click here
• SAP Finance GL Accounting: Click here
• SAP Finance Accounts Payable: Click here
• SAP Finance Accounts Receivable: Click here
• SAP Finance Bank Accounting: Click here
• How to Create a Controlling area in SAP: Click here
• SAP Controlling – Cost Element Accounting: Click here
• SAP Controlling – Cost Center Accounting: Click here