What is Currency Exchange Rates in SAP S4 Hana
- Currency exchange rates are used to translate from one currency to another currency and are defined on a regular basis.
- The exchange rates play an important role during posting and clearing documents as they are used to translate foreign amounts posted and cleared based on company code currency
- The exchange rate also determine profit or loss from exchange rate difference
- It is a mandatory step to main exchange rates between the currencies to be used in the SAP S4 Hana system.
- Exchange rates that are maintained in the SAP S4 Hana system are applicable for all company codes.
How to maintain exchange rates in the SAP S4 Hana system
You can maintain exchange rates in the SAP S4Hana system by using the transaction code “OB08” or menu path.
Step 1: Execute transaction code “OB08” in command field to enter exchange rates in SAP
Step 2: In the next screen Change view “Currency Exchange Rates Overview” click the new entries button to maintain exchange rates in S4hana as per requirements
Step 3: On new entries of currency exchange rates screen, update the following fields
- ExRt: Enter the exchange rate type key to use for currency exchange rates. In our case, we are using the Average Rate as the exchange rate type.
- valid from: Enter the date that the exchange rate to be valid from
- From / To: Enter the currency pair in the given fields From and To.
- Direct Quotation: Direct quotation refers to the exchange rate that gives the amount of the To price currency to From currency
After maintaining the exchange rates for currencies, click on the save button to save the details in the SAP S4 Hana system.