How to Define Translation Ratios for Currency Translation in SAP

After maintaining the standard quotation and exchange rate types, the next configuration step is to define the translation ratios for the currency transactions for each exchange rate type.

Please Note: You shouldn’t change the translation ratios in the middle of the project. Everything should be configured at the initial stage before the project goes online.

In our scenario, the client is newly implemented the project and dealing with customers/vendors that are located in various USA & UK. So based on this scenario, we are going to maintain the following translation ratios

Exchange Rate TypeFromToValid FromRatio (from)Ratio (to)
GUSDINR01.01.202011
BUSDINR01.01.202011
MUSDINR01.01.202011
GEURINR01.01.202011
BEURINR01.01.202011
MEURINR01.01.202011

Based on the ratio that you define in the SAP system, the exchange rates are getting translated.

Configuration Steps:

  • IMG Path: SIMG > ABAP Platform > General Settings > Currencies > Define translation Ratio for currency translation
  • Transaction Code: OBBS

Step 1: Execute the t-code “SIMG” in the SAP command field and enter to continue

Step 2: Follow the IMG Menu Path, ABAP Platform > General Settings > Currencies and execute the IMG activity  “Define Translation ratio for currency translation”

Step 3:  Click on “Yes” to continue to update translation ratios.

Translation ratios define in SAP

Step 4: On change view “Currencies: Translation ratios” overview screen, click on new entries

currencies for translation ratios in SAP S4 HANA

Step 4: On new entry screen, update the following details

Define translation ratios for currency translation in SAP S4 HANA

Click on save button and save the configured details on the SAP S4 Hana system.

Note: It is a one time activity, if you are already defined the currency translation ratio, you will get an error as “An entry already exists with the same key”