Currency conversion enables businesses and individuals to conduct transactions across borders.
If your business is spanned across the globe then its very important for the user to understand what is the conversion rate at that point of time and what is required to publish in different currency format.
In the context of rental calculations for returnable material currency conversion is essential when dealing with transactions or agreements that involve different currencies. If rental agreement involves returnable material transaction between parties in different countries or using different currencies currency conversion is necessary to ensure that rental charges, fees, or payments are appropriately calculated and accounted for in the relevant countries.
Rentals which are calculated for each Returnable Account for a particular Returnable Material can be converted into different currencies which packaging manager chooses from drop down. Currency conversion is handled via SAP Markets Rate Management service integration which is a BTP offering. RPM is using SAP MRM with internal plan. Also MRM application plan is available for maintain the currency favorites. Marinating favorites is mandatory for internal plan. SAP MRM exposes a rest API which will retrieve the exchange rate for requested currencies. RPM will call MRM only on need basis.
Why Markets Rate Management (MRM) ? Why not S/4 HANA Currency Conversion API's?
SAP Market Rates Management offers you, in addition to getting market rates directly from leading providers like Thomson Reuters, the ability to bring in your own market data from your own sources. In this case, you need to implement your own mechanism to upload rates to the service. This is completely independent of your S/4 HANA solution which makes it easier and lighter for SAP BTP applications to target non existing SAP Customers as well.
How to consume SAP BTP MRM service find the details here link.
Integration of MRM with SAP Returnable Packaging Management
MRM integration with RPM is achieved in a most efficient way possible since each exchange rate conversion in MRM is charged even if you want to fetch the currency for single pair. If source and target currency is reversed for that as well the cost is calculated. Also there is a limitation factor for the overall usage.
Below flow chart explains high level flow of the integration aspects.
The SAP Market Rates Management, Bring Your Own Rates data option allows you to upload and download your own market rates licensed from third party data providers. It includes upload and download APIs that enable you to upload and download market data in a format compatible with an SAP S/4HANA system. You can distribute the downloaded rates in all connected systems in your landscape.
RPM uses the capability Get market rates from Refinitiv (formerly our Thomson Reuters data option).The Refinitiv data option for SAP Market Rates Management provides market rates on a daily basis or for a specified date range that you can use in SAP applications.All market rates are published at 12:30 AM UTC with the exception of credit spreads. Credit spreads are published at 7:00 AM UTC.
SAP Market Rates Management makes it easier for any BTP applications who are looking for currency conversion scenarios in their capabilities and RPM is the best example of one such application which has delivered the integration with more efficient way.