FX Conversion for clearing/ reporting

[former_member1084678]

Hello,

Below are some questions around the FX conversion rate used by SAP for conversion of JE posting amounts to base/ reporting currency. E.g. I have a trade pricing in EUR and local currency/ reporting is USD. At each month end I account for unrealized P&L and submit the relevant JE posting to SAP

1. Based on what I've read, we would typically have SAP use exchange rate type M (average rate) to convert EUR amounts to USD for accounting in SAP. Is this right?

2. How often does exchange rate type M for each currency get updated? Guessing it depends on currency pair. But does this update happen once a day at a particular close depending on currencies in the pair?

3. When I make a posting to SAP in this case for unrealised P&L, will SAP convert the EUR amount to USD using the latest updated average USDEUR rate? Or will it use the rate from the day prior to posting day (yst's rate)?

Thanks

[AlexGourdet]

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