Recall that we do this during period end close or as part of financial closing tasks.To valuate open items in foreign currency and foreign currency balance sheet accounts as part of the closing operations.What is the purpose of exchange rate functionality in SAP? Why do we have to maintain exchange rates in SAP? 3 Purposes for Exchange Rates in SAPĪs stated in the Exchange Rate SAP Help Document, there are three purposes: This is of course considering that the necessary maintenance and configuration is accurately setup in the SAP system. SAP in turn should be able to handle this transaction with different currencies through the exchange rate functionality. In this scenario the two currencies are: EUR and USD. If a company is based in Europe and purchases from a foreign vendor based in United States, you would expect 2 (two) different currencies involved in the financial transaction. Realistically, a company may have transactions in different currencies. Summary of TCodes, Tables, and Configurations. Configuration for SAP Foreign Currency Valuation.Configuration and Maintenance of Exchange Rate in SAP. During financial closing or month end / period end close, we need to perform Foreign Currency Valuation. In a nutshell, Exchange Rates are maintained in SAP and are utilized in daily tasks through the usual financial postings and maintenance of these rates. What is the difference between exchange rate and foreign currency valuation in SAP?
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