Exchange Rate Conversion for Company Code Currency

[emarinova]

In standard S/4HANA systems, M is the standard translation currency type for company code currency translation, and it cannot be altered for any specific company codes:

There is a legal requirement for specific countries to use rates provided by the national banks. It means, instead of usual Reuters rates (scope item 1S4) updating the exchange rate type “M”, a new source for foreign currency exchange rates will be needed in our current project for those countries.

We have followed this SAP documentation: https://community.sap.com/t5/enterprise-resource-planning-blogs-by-sap/currency-conversion-with-pres....

We proceed with all customizing suggested; however, this S/4 HANA Public Cloud implementation is a worldwide project and for countries that use the same currency (example: EUR, GBP) and requiring different sources for exchange rate declarations, Alternative Exchange Rate solution would not work.

We will have many rollouts to different countries, using the same currency (Example: GBP, EUR, USD), in case more than 2 countries use alternative exchange rate types, it would work only for one country. In this case, alternative exchange rate is a huge problem to be used because multiple countries use the same currency as their company code currency but use different sources for exchange rate conversions alternative exchange rate usage will only work for 1 of them, not for all.   

Example: Serbia, Turkey, Bulgaria have a legal requirement to use their own national banks as an exchange rates provider, and Reuters is setup for type M as a default provider for the countries already active in the system. By adding a new country we will be obliged to exclude this countries' ratios from Reuters. At some point, this will make a mess and will be hard to monitor.

Please provide us any tips, tricks, advices.

[HenrikeGrötecke]

forwarded to experts

[John_DG]

Hello,

We are implementing a similar project with S4 Public Cloud and have hit the same roadblock. Were you able to find a solution for this?

[emarinova]

For now we have set two providers for the rates, specifying which rates from which provider to be taken. We follow the rule XXX/company currency. For example from Serbia we are getting the rates XXX/RSD from the national bank and for the other countries we are taking the rates from Reuters. To be honest I am not sure yet how to proceed when the next country will come with their rates provider. Still expecting some feedbacks here.

[Juan_Torrero]

I have seen situations where the central bank provides a specific exchange rate for certain transactions and/or for month end closing. In these cases, the creation of a custom exchange rate type has been useful. I would say that you need to explore the usage and combination of additional currency types together with custom exchange rates to manage your particular situation.