Currency conversion is not functioning incorrect setup issue with public cloud

[SreJ]

Dear All,

I am writing to address an important issue we are facing regarding the currency conversions within our newly created company code in Hong Kong. As per the default settings in the SAP public cloud, the company code currency is set to HKD, while our intended currency is USD.

Following our previous discussions with SAP, we have attempted to maintain the functional currency as USD as guided by the relevant Snote. However, we are currently encountering discrepancies when transactions are posted in EUR; these amounts are being converted first to HKD and then to USD, which is resulting in differences that we cannot account for.

To resolve this, we need to ensure that the conversion is consistently made from EUR directly to USD without the intermediate HKD conversion. I would appreciate your insights or any further steps we can take to rectify this situation.

[OwenLiu]

Added Finance tag, please remove other tags.

[OwenLiu]

Hello, could please first share how did you make the posting? With which app?

[raymond_giuseppi]

Could you check within Check Exchange Rate Types (102349 configuration activity) if there is still a kind of legacy 'reference currency' in your Rate Types Customizing after Change of Functional Currency execution ?

[SreJ]

Dear OwenLiu,

Thank you for your response,

We are posting Post General Journal entries for normal JV transactions (SA) in EUR, considering that our company code currency is HKD, while our client requires the reporting in USD.

As per SAP’s suggestion, we have set USD as the functional currency and have maintained the currency exchange rates for EUR to USD and USD to EUR. However, it seems that the system is converting EUR to HKD first, and then HKD to USD. This has resulted in discrepancies between the reports generated by the client and our SAP reports.

My exchange rates which we have maintained for the January Month.

Specifically, we are posting an amount of EUR 15,420, which should convert into USD 16,808.19 at an exchange rate of 1.09.

However, it appears that the system is improperly converting EUR to HKD at an exchange rate of 8.53, resulting in a value of HKD 131,535.67. Following this, the conversion from HKD to USD is occurring at an exchange rate of 7.81, which leads to a total of USD 16,841.96.

This sequence of conversions deviates from the expected outcome, and as a result, we are seeing a discrepancy of USD 33.77.

The expectation is that the system should convert directly from EUR to USD. Ideally, our company code currency should be USD; however, as per SAP public cloud standards, the country currency by default is set as the company code currency. The users require only the transaction currency to convert to the functional currency, which is intended to be USD for accurate reporting.

Please let me know how we can address this issue moving forward or if there's any additional information you need from my end.