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Author's profile photo Shailesh Patil

Maintain Currency Translation Ratios in OBBS

Background:

It is necessary to maintain translation ratios for currency conversion when we load data from different source systems for staging. Each translation ratio is maintained to define a bank buying and selling rate and an average rate for the translation of foreign currency amounts. The average rate is used for foreign currency translation, and the buying and selling rates for the valuation of foreign currency amounts.

Before maintaining the ratio, it is necessary check if source currency and target currency is maintained in BI system either in Customizing settings “SPRO” or in Currency Codes table TCURC.

The Translation Ratios are saved in Conversion Factors table i.e. TCURF.

SPRO setting

Step by Step Procedure – Maintain Translation Ratios:

  1. Go to transaction code OBBS, you can see existing ratios maintained 

  2. Click on “New Entries” to maintain new ratios. You have different options to change, copy and delete existing Translation ratios.

    Crete New Entries

  3. You can maintain new Translation Ratio withdetails like Exchange Rate Type, From Currency, To Currency, Ratio (from), Ratio (to) and Alternative exchange rate type. The Alternative exchange rate types are used to process currency translations for certain currency pair combinations from a given date using a different exchange rate type. Save the entries.

    Maintain Ratio

     
  4. Go back and select the new entries to transport. You can select the entries by clicking on “Position” and enter the values in pop up window.

    Maintain Entries

  5. After that click on “Transport” option from toolbar to create Transport Request. Include in the Request that you have created and press save.

  6. This will include the entry in Transport Request that is created. The message can be seen at the bottom of the screen.

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      Author's profile photo Derek Uweri
      Derek Uweri

      When I came across exchange rates in sap for the first time, I was not familiar with translation ratios.

      Maintaining currency translation rations in OBBS was not an issue for me, I wanted to know more. I wanted to know what translation ratios were, how different they are to exchange rates & what is the impact if you change them.

      The currency translation ratio identifies the relationship between 2 currencies.

      It is not advisable to change the translation ratios. You should use the pre-defined ratios that already exist in SAP. If there isn’t a pre-defined translation ratio, then use the recommended 1:1 ratio.

      However, where both currencies are not comparable due to instability and inflationary factors in one of the currencies, then you can use a different translation ratio.

      Let us use the USD v Nigerian Naira For example:-

      $1 : N50 Exchange Rate N to $ = 0.02 Translation ratio of 1:1

      $1:N500,000 Exchange Rate N to $ = 0.000002

      Therefore, you can change the Translation ratio to $100:N5,000 so that N to $ = 0.02

      So, a different translation ratio is required for currencies that are not comparable in terms of stability.