Ratio in Currency Conversion

[Former Member]

Hi ... Can you plz clarify me on the significance of maintaining "from/to ratio" in currency conversion? I could see few threads related to that in this forum but still I am in confusion.

To my knowledge, "From/ To Ratio" is maintained in two places under currency setting in SPRO (Define Translation ratios for Currency Translation AND Enter Exchange rates), which would get stored in tables TCURR and TCURF. I have below questions pertaining to this ratio maintenance:

1. How these ratios are being considered during currency conversion? Please give me the formula used in the logic.

2. Why it is being maintained at two places?

3. Which one is the priority?

Here are some sample entries for few currecies. Local currency in our case is EUR. I couldn't come to a conclusion on how the exchange rate is getting calculated. In case of INR and IDR, it is not giving correct value. Can you please advise, whether the below entries are correct, especially for IDR --> EUR conversion?

Current conversion rates as per google site (just for your reference)

1 EUR = 64.5942438 INR

1 EUR = 9.34722906 CNY

1 EUR = 12,334.188 IDR

TCURF and TCURR entries for INR and EUR currencies:

Exch.rate type - From currency - To currency - Valid from - Ratio (from) - Ratio (to) - Alt.exch.ratety - Ex.rate valid from

EURX - EUR - INR - 81999898 - 1 - 1 - No value - 00/00/0000

EURX - INR - EUR - 81999898 - 1 - 1 - No value - 00/00/0000

Exch.rate type - From currency - To currency - Valid from - Exchange Rate - Ratio (from) - Ratio (to)

EURX - INR - EUR - 79889389 - 6,467.55200- - 100 - 1

TCURF and TCURR entries for CNY and EUR currencies:

Exch.rate type - From currency - To currency - Valid from - Ratio (from) - Ratio (to) - Alt.exch.ratety - Ex.rate valid from

EURX - CNY - EUR - 81999898 - 1 - 1 - No value - 00/00/0000

Exch.rate type - From currency - To currency - Valid from - Exchange Rate - Ratio (from) - Ratio (to)

EURX - CNY - EUR - 79889389 - 9.36962- - 100 - 1

TCURF and TCURR entries for IDR and EUR currencies:

Exch.rate type - From currency - To currency - Valid from - Ratio (from) - Ratio (to) - Alt.exch.ratety - Ex.rate valid from

EURX - EUR - IDR - 81999898 - 1 - 1 - No value - 00/00/0000

EURX - IDR - EUR - 81999898 - 1 - 1 - No value - 00/00/0000

Exch.rate type - From currency - To currency - Valid from - Exchange Rate - Ratio (from) - Ratio (to)

EURX - IDR - EUR - 79889389 - 12.31558- - 10,000 - 1

Please help.

Thanks,

Arun

[Former Member · Accepted solution]

Exch.rate type - From currency - To currency - Valid from - Exchange Rate - Ratio (from) - Ratio (to)
EURX - INR - EUR - 79889389 - 6,467.55200- - 100 - 1 

To interpret the entry above, I'd imagine you could read it as the following:

Valid since 06/10/2011, every 100 INR = 6,467.55200 EUR

TCURR is the main exchange rate table, while TCURF is to denote the alternative exchange rate.

[Former Member · Accepted solution]

Hi Jay ..

Thanks for your reply. But I think it should be other way like 100 EUR = 6,467.55200 INR, which is correct as per the market rate. Actually I was checking only the TCURR entries. When I checked the SPRO entries, it is more clear for me.

Do you know, how to find out which exchange rate type in being used by SRM documents? Are there any config setting for that? I think, M is standard. Can we change that to some other exchange rate type? Kindly advice.

[Former Member · Accepted solution]

Do you know, how to find out which exchange rate type in being used by SRM documents? Are there any config setting for that? I think, M is standard. Can we change that to some other exchange rate type? Kindly advice.

SRM uses the default exchange rate type "M" when reading the exchange rate value. This is not through configuration, but hard-coded. Unfortunately exchange rate set is not part of the BBP_DOC_CHANGE_BADI interface so you can't easily switch. You might need to enhance the code if you have to use another type.

[Former Member · Accepted solution]

ok. Got it. thank you.