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FIN-CS Currency Translation - Profit & Loss

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Dear Community,

regarding Currency Translation from Local Currency into Group Currency amounts, I/we wonder whether day rate conversions (from Accounting - ACDOCA throughout the accounting period) is recommended for P&L (Income Statement), literature (IAS) suggests this (see attached).

  • Balance Sheet at Closing (CLO) rate
  • Profit & Loss at Day (M) rate

We expect currency difference in eg BS accumulated depreciation vs PL depreciations. Kindly share your experience.

Best regards,



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My read is the same as yours for US-GAAP and IFRS. The preference is to record P&L at the rate effective when the transaction occurred. Where that is not possible, a monthly conversion using the average rate is an acceptable alternative.

I've always tried to handle translation in the GL and just load the results into GR. This ensures the balances tie during drill downs. Unless you have non-SAP companies where you just get an LC trial balance, or you setup a company which has changed parents and requires a new GC not available in the GL, I can't think of why I'd want to do translation in GR. (Especially in S4 with LC, GC, and freely defined currencies 1-8, there's a lot of room to track many potential currencies for consolidating parents, if known in advance.)


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Hi Chris,

SAP Consulting team also suggests the C/T process from S4 Finance when all companies are part of universal ledger.

There are pros and cons to each option.

S4 Finance:/Central Finance: All Companies must be part of S4 Finance/S4. Secondly- One Reporting Currency ( e.g USD or EUR). If you have more than one reporting currency in scope, then we suggest leveraging the extension version in GR.

If there are non SAP entities, obviously the GR Currency translations process is suggested.

BR, Jana