How to Define Translation Ratios for Currency Translation In SAP S/4Hana

You can maintain translation ratios of currency translation for each currency pair and exchange rate type as per the requirements of an organization. For example, you specify that on 13/01/2021 the exchange rate for INR and USD is calculated as a 1:1 ratio, this translation ratio will apply during currency translation and applied during exchange rate translations.

You can define translation ratios for currency translation in S4 Hana by using navigation methods

  • Transaction code: OBBS
  • SAP IMG Menu path: SAP Customizing Implementation Guide > SAP NetWeaver > General Settings > Currencies > Define-Translation Ratios for Currency Translation

Step 1: Execute transaction code “OBBS” in the SAP command field to define transaction ratios for currency translation in the S4Hana system.

OBBS - Define Translation Ratios for Currency Translation in S4 Hana

Step 2: A warning message will be displayed as “Making changes to the table of translation factors may cause unwanted inconsistencies in your system”, click on the Yes button to continue.

Define Translation Ratios - warning message in S4 Hana

Step 3: The change view “Currencies: Translations Rations” overview screen will be displayed. To define translation ratios in SAP S4Hana, click on the “New Entries” button

Translation Ratios for Currency Translation new entries in SAp S4Hana

Step 4: In the next screen- Change view currencies: translation ratios overview, update the following fields

ExRt: In this field, you specify an exchange rate type for the currency pair. Enter the exchange rate type that you want to maintain, in our case we are going to maintain the exchange rate type as M {Average Type}. Using average rate type MM enables to determine bank selling rate or bank buying exchange rate at the average by adding or subtracting values.

From – Enter the currency key that you want to translate from. Here we are using USD/INR as the currency pair

To: Enter the currency key that you want to translate.

Valid (from): Enter the date, that the exchange rate translation ratio is valid from. It is recommended to maintain today’s date.

Ratio (from): Enter the ratio for currency translation from, here we are maintaining ratio as 1:1

Ratio (to): Enter the ratio for currency translation to

Define Translation Ratios for Currency Translation in S4 Hana

Press enter from the keyboard to confirm the entries. Click the save button to save the configured currency translation ratios in SAP.