To Configure currencies the currency table must have entries for all currencies which occur in your business transactions. In the SAP standard recipient system, all currencies are defined according to the international ISO standard. SAP recommends that you use the ISO standard for your additional entries. If your entries do not correspond to the ISO standard, you will not be able to use data exchange in international communication (e.g. bank clearing transactions).
Remember the following in mind while configuring currencies in SAP
- Check the currency entries for completeness.
- Add the missing currency entries as required.
- Use the ISO standard for your additional entries.
The transaction to access this directly is 0Y03
Parallel Currency in SAP
When defining the currencies for a Company Code, it is possible to maintain, for each of these company Codes, two more currencies in addition to the Local Currency. These two currencies are called the Parallel Currencies, which can be the:
- Group Currency
- Hard Currency
- Global Company Currency
- Index-based Currency
To translate the values from one currency to the other, you will need to maintain an exchange rate for each pair of the defined currencies in the system. When parallel currencies are defined, the system maintains the accounting ledgers in these currencies as well, in addition to the local currency.
Maintaining Currency in SAP
Currency (the legal means of payment in a country) in SAP is denoted by a 3-character Currency Code, maintained per ISO standards. Example: USD (U.S. Dollars), INR (Indian Rupee), GBP (Great Britain Pound), etc. Each currency code in the system will have a validity defined.
A currency is defined in SAP using the IMG path: General settings>Currencies >Check exchange rate type
Easy Way to Maintan Exchange Rates in SAP
SAP offers a variety of tools to maintain exchange rates on an on-going basis. The tools include:
- Exchange Rate Spreads
- Base Currency
Use the SAP supplied program, RFTBFF00, for populating the exchange rate table automatically from an input file in a multi-cash format from a commercially available input file.