Functional Currency differs from Company Code Currency

[DerekVersola]

Hi Experts, 

We have a situation for our client wherein their functional currency does not follow their local currency. We understand in SAP S/4HANA cloud, public edition the solution for this is to define a freely defined currency as the functional currency. However, they found some potential risk to this issue particularly in product costing. Standard cost estimates only take in company code and controlling currency but not the functional currency. With this they are concerned on the exchange rate fluctuations. Furthermore, we also noticed there are some limitation in terms in reporting this freely defined currency has. For example, P&L plan/actuals and similar reports does not have the functional or freely defined currency in them. 

Surely there are other companies having the same setup, if you do, can you share your approach to this issue? Also any inputs to this is welcomed.

Regards, 

Derek

[Li_Sen]

Dear

Using free define currency as a functional currency is very inconvenient.

unfortunately, S/4HANA Cloud does not allow to change company code currency, as it always the same as the official currency in which the country  it belongs.

However, in practice, some customers for example, HK companies require USD company code currency(functional currency) rather than HKD, they just created HK company codes under US country version.

The same may not be true in your scenario, but this approach may be worth considering and testing.

Regards,

Sen

[DerekVersola]

Hi Sen,

We are actually thinking of that, however we worry that we will lose the localisation in place of the country, particularly the SAP DRC. If there is a way we can implement DRC for that company in another country then that should solve the issue.

Regards, 

Derek