Define Central Currencies, Central and Local Exchange Rates, and Exchange Rate Types

Outcome

Central currencies are defined, including information about exchange rate factors, which is the relationship between foreign and local or third currencies, and the number of decimal places for each currency. The company or division, one or several, uses local currency as the base currency. The third currency is an optional currency that you can use for reporting or comparison purposes, or as a way of using a more stable currency than the local currency.

Central and local exchange rate types are defined and connected to exchange rates. You can also connect exchange rate types to customers, suppliers, and price lists.

Central and local exchange rates in relation to the local and third currency are defined. You can specify these in up to six decimal places, and all six decimal places are used for all exchanges. However, the results are displayed with two decimal places at the most.

Exchange rate, third exchange rate, exchange rate type, and currency are stored in the (CCURRA) file.

Before you start

Before you start, you must meet these prerequisites:

• You must complete the steps described in Configuration for Multiple Unit Coordination (MUC).
• You must be in the correct division and commands to switch between divisions that you must define in 'Function. Open' (MNS110). You must have authorization to the divisions. Authorization is given in 'User. Open' (MNS150).
• To define exchange rates in third currency, you must set 'Ex rt mgmt 3rd' to 2=‘Yes, based on foreign currency’ in ‘Settings - General Ledger’ (CRS750). This option enables a direct conversion between the foreign and third currency.

Follow these steps

Overview

Start by defining central currencies, exchange rate types, and exchange rates in the blank division. When you are finished with the blank division, continue defining local exchange rate types and exchange rates in the other divisions.

1. Select one of these alternatives:

   • To define the central currency, exchange rate type, and exchange rate for the blank division, go to Define central currency .
   • To define local exchange rate type and exchange rate, go to Define exchange rate type and exchange rate.

Define central currency

1. Start 'Currency. Open' (CRS055/B).

   This instruction is based on panel sequence E.

2. Specify the currency identity and select New.

3. On the E panel, specify a name and description for the currency. Also, specify a rate factor and number of decimals to use and, when necessary, an accepted rate deviation. The number of sales price decimals can optionally be defined if the regular number of decimals should not be applied to sales prices. Note that the sales price decimals functionality is not supported in all parts of the system. Press Enter and F3.

Define exchange rate type, exchange rate, and third exchange rate

1. Start 'Exchange Rate Type. Open' (CRS056/B).

   This instruction is based on panel sequence E1.

2. Specify the exchange rate type identity and select New.

3. Specify a name and description for the exchange rate type and an optional rate type text. Press Enter.

   'Exchange Rate Type. Open per Currency' (CRS059/B) is started.

4. In (CRS059/B), open a currency.

5. 'Exchange Rate. Open per Date' (CRS058/B) is started.

6. In (CRS058/B), specify the date from which the rate type or currency becomes valid and select New.

7. On the E panel, specify the exchange rate and, when applicable, the third exchange rate. Press Enter and F3.

   You can review the results of your settings in 'Exchange Rate. Open Rate Type' (CRS057), reached by selecting option 11 = 'Rate/rate type' in (CRS055).

Parameters to set

This table shows the parameters to set for central currencies, central and local exchange rates, and exchange rates types:

Program ID/Panel	Field	Field description
1. Define currency
(CRS055/E)	Rate factor	The field indicates the relationship between one unit of this currency and another unit of local currency. The use of the rate factor makes it easier to define exchange rates between widely differing currencies. The valid alternatives are: 1-1000:1 2-100:1 3-10:1 4-1:1 5-1:10 6-1:100 7-1:1000
(CRS055/E)	Number of decimal places	The field indicates the number of decimal places to be used for the respective currency. Valid alternatives are zero up to two decimal places.
(CRS055/E)	Accepted rate deviation	The field indicates the deviation accepted when rate is entered or changed manually in connection with transaction entry. The value is entered as a percentage for each currency.
(CRS055/E)	Price decimals	The field indicates the number of sales price decimals to use for the currency. Valid values are 0-4. If the value is 0, then the currency’s regular number of decimal places is used.
2. Define exchange rate type, exchange rate, and third exchange rate
(CRS056/B), (CRS057/B)	Rate type	The field indicates the exchange rate type. The valid alternatives are: 01: Variable rate 02 to 99: May be used optionally The rate type is also connected to customer, supplier, price list, year, and budget procedures.
(CRS059/B)	Currency	The field indicates the currency that is to be connected with the exchange rate type.
(CRS058/B)	Rate date	The field indicates the date from which the rate type or currency becomes valid.
(CRS058/E)	Exchange rate	The field indicates the exchange rate for the connected currency, which you can specified with up to six decimals. The result is, however, displayed in zero up to two decimals places, depending on the settings in (CRS055/E).
(CRS058/E)	Third exchange rate	The field indicates the third currency exchange rate for the connected currency, which you can specify with up to six decimals. The result is, however, displayed in zero up to two decimal places, depending on the settings in (CRS055/E).

Russia-specific master data

This functionality must be set up for divisions configured with country version RU in 'Company. Connect Division' (MNS100/L).

Once the functionality has been set up, the Russia-specific master data is stored in the corresponding Russia master tables.

Follow these steps:

1. Start 'Currency. Open' (CRS055) and include panel X, country specific, in the sequence.
2. Search for the specific currency and use the option Change.
3. Navigate to 'Currency RU. Open' (CRRU06). Specify values in the required fields and click Next.
4. You can use the options Change, Delete, and Display. The Delete option deletes both the currency master and Russia-specific master data for currency.