Product Information
SAP S/4HANA Currency Setup
Objective
This blog is aimed to provide an insight and overall understanding and consideration of currency setup in S/4HANA environment and have tried to answer the following queries.
- What is currency type
- In SAP S/4HANA how many kind of currency types exists
- How to setup custom currency type
- How to set a currency key with the custom currency types
- How to setup currency in Finance and linking Currency and Ledger
- Options to setup currency in material Ledger
- Options to setup currency in Transfer Pricing
- Options to setup currency in Controlling Area
- Options to setup currency in COPA
- Options to setup currency in New Asset Accounting
- Introduction of new currencies with S/4HANA 1809 release
- Amount Field Length Extension with S/4HANA 1809 release
What is currency type
In SAP configuration, currency plays an important role. In SAP, all currencies are maintained according to ISO Standard. We can configure currencies as per the rules of the country defined in the company code. SAP provides currencies of every country and we can also define our own currency if we require.
Currency Types in S/4HANA
We have following standard Currency types in SAP S/4HANA
Currency Type 00
Document currency is the currency that is applied for the document and company code currency is the currency where the document is generated. Example : An Indian company does a posting for a Sale of goods in USA. In this case the document currency would be USD and the Company code currency would be INR
Currency Type 10
Company code currency is defied at company code level in transaction OX02
11- Co Code Currency Group Valuation (used in Transfer Pricing)
12- Co Code Currency PC Valuation (used in Transfer Pricing)
(Currency Type 11 and 12 are explained in transfer pricing section)
You can select currency type 10 in controlling area only if all company codes assigned to the controlling area uses same currency.
Currency Type 20
If data is returned from Controlling to financial accounting in your application, for example via order settlement, you must use a currency type in the controlling area that is also used as the currency type of a parallel currency in the assigned company codes. Typically, these are the currency types for a group currency, hard currency or index-based currency.
–> Currency type 20 cannot be used in FI.
Currency type 20 is supported in FINSC_LEDGER, therefore only for compatibility reasons; if currency type 20 was already used in CO, then after migration of the currency configuration, “KSL” field of ACDOCA will be used for CO only, and FI will work with the fields HSL, OSL and VSL.
For new installations we strongly recommend to configure currency type 30 in CO and in FI (for the KSL (Group Currency) field in ACDOCA).
Currency Type 30
You define the currency key for these currency types when you define the client. You can define it by T-code: SCC4.
Currency type 20 is only known by cost accounting, whereas currency type 30 is known in financial accounting also. Therefore, data transmission via the modules CO, AM, and FI works seamlessly without any difficulties if currency type 30 is used by all.
Whether to use currency type 20 or 30 to know more detail you may read OSS note 119428
31- Group Currency Group Valuation (used in Transfer Pricing)
32- Group Currency PC Valuation (used in Transfer Pricing)
(Currency Type 31 and 32 are explained in transfer pricing section)
Currency Type 40 and 50
Hard Currency and Index Based Currency
You define the currency key for this currency type when defining the countries in the “Hard currency” field T-code: OY01
If you select currency type 40 or 50 in controlling area, the company codes must either be in the same country, or the countries must use the same index-based currency or hard currency.
Currency Type 60 – Global Company Currency
If you select currency type 60 in Controlling area, the company codes must belong to the same company, or the companies must use the same currency.
With currency types 40, 50, and 60, specify the currency only as long as no company codes have been assigned. If company codes have been assigned, the system defaults the currency automatically.
Currency Type 70 Object currency (CO)
Each object in Controlling, such as cost center or internal order, may use a separate currency specified in its master data. When you create an object in CO, the SAP system defaults the currency of the company code to which the object is assigned as the object currency. You can specify a different object currency only if the controlling area currency is the same as the company code currency. There is an object currency for the sender as well as one for the receiver.
Supported currencies in ERP
Still in S/4HANA till On-premise 1709 release we have maximum 3 currencies in FI(BSEG), 2 currencies in CO and 3 currencies in ML. However in Universal Journal table(ACDOCA) we can have maximum upto 10 currencies.
Currencies used in S/4HANA 1610 Onwards
From SAP S/4HANA 1610 On Premise version as well with SAP S/4 HANA Finance 1605 we can have upto 10 currencies in Universal Journal (ACDOCA)
Go to SPRO -> Financial Accounting->Financial Accounting Global Settings-> Ledgers-> Ledger -> Define Settings for Ledgers and Currency Types
In this Customizing activity, you configure the currency types and currency conversion settings that you use in Accounting and define the corresponding ledger settings and assign accounting principles for ledgers and company codes.
Currency Types
Check your currency settings and create additional currency types if required. Your own currency types must begin with the letter Y or Z, for example Y1, Y2, ZA etc.
For each currency type you decide whether you want the corresponding currency conversion settings to be valid globally for all company codes or want to define the currency conversion settings at company code-level.
You can’t make any changes to the SAP standard currency types Document Currency (00) and Company Code Currency (10). For the other standard currency types, you can define whether the corresponding currency conversion settings are valid globally or at company code-level.
If you are using transfer prices, create the required number of currency types (depending on the valuation methods you need) and select the valuation view you need (legal, group, or profit center valuation). For the currency types with group or profit center valuation, you need to enter the base currency type, meaning the currency type with the legal valuation view on which the transfer prices valuation will be based. For each base currency type there can be only one currency type using group valuation and one using profit center valuation.
Global Currency Conversion Settings
For your own currency types, enter the currency into which the conversion is to be made (Currency field), and the currency from which currency conversion is to be made (Source Currency field). In addition, enter the exchange rate type and the date on which the translation is to be carried out (document date, posting date, or translation date). You can also decide whether the currency conversion shall be done in real-time. If you don’t select the Real-time Conversion checkbox, you can do this at period-end closing using the foreign currency run.
Currency Conversion Settings for Company Codes
Company code settings for the ledger
ACDOCA V/s BSEG currency settings
First 2 Currency fields are derived from local currency i.e company code currency and controlling area currency and rest 8 fields are freely defied currency per ledger and all these fields you may see in Universal Journal table (ACDOCA)
There is no dependency on the currency types of the leading ledger.
Real-time currency conversion for all currency types is possible (or with foreign currency valuation program at period-end
Still BSEG is populated with 3 currencies so you may choose which 3 currencies you want to populate in BSEG (of course first currency will be default to company code currency for BSEG)
For further detail you may refer OSS note 2344012 (Currencies in Universal Journal)
Currencies used in Controlling
The system uses this currency for cost accounting. This currency is set up when you create the controlling area. It is based on the assignment control indicator and the currency type, following possible currencies can be assigned to controlling area, these are explained in currency type section above.
10 Company code currency
30 Group currency
40 Hard currency
50 Index-based currency
60 Global company currency
Controlling Area Currency
SPRO-> Controlling-> General Controlling-> Organization-> Maintain Controlling Area
Transaction Currency (CO)
Documents in Controlling are posted in the transaction currency. The transaction currency can differ from the controlling area currency and the object currency. The system automatically converts the values to the controlling area currency at the exchange rate specified.
The transaction currency is USD, the controlling area currency is EUR, and the object currency is SFR (Swiss francs). The system converts the amounts as follows:
- From transaction currency to controlling area currency (USD to EUR)
- From controlling area currency to object currency (EUR to SFR)
Material Ledger Currencies
SPRO->Controlling->Product Cost Controlling-> Actual Costing/Material Ledger-> Assign Currency Types and Define Material Ledger Types
Currency Type 10, 30
With Transfer Pricing active
For example we can have following currency types in Material Ledger
Currency Type 10, 31
Or
Currency Type 10, 32
Or
Currency Type 10, 31,32
Profit Center Currency with Transfer Pricing
Transaction 0KE5
It is common to set 30 in the controlling area, 10 and 32 in the currency and valuation profile, and 10 and 32 in the material ledger.
If you then set the profit center local currency type to 30 and valuation view 2 (profit center valuation) in Profit Center Accounting, the currency type 32 is continuously used. In Profit Center Accounting, 32 is updated as profit center local currency in the currency field KSL. The company code local currency in the profit center valuation (12) is then translated from the values 32 with the exchange rate type M with the current exchange rate (and updated in the field HSL). This means that in Profit Center Accounting, only the PCA valuation is available. The legal valuation (10, 30) is no longer available in PCA.
Similarly, if you then set the profit center local currency type to 30 and valuation view 1 (Group Valuation) is selected in profit center accounting then the currency type 31 is used. In Profit Center Accounting, 31 is updated as profit center local currency in the currency field KSL. The company code local currency in the profit center valuation (11) is then translated from the values 31 with the exchange rate type M with the current exchange rate (and updated in the field HSL). This means that in Profit Center Accounting, only the group valuation is available. The legal valuation (10, 30) is no longer available in PCA.
The flows of goods in legal valuation and in profit center valuation are valuated differently, even if the currency key is identical. For details. Please read the SAP note 1442153 .
If you need to change, add or delete any currency settings after the Material Ledger is productive, you would need to reverse the customizing changes, deactivate the Material Ledger, change the customizing to the desired values and restart the Material Ledger again. As a consequence, you will lose all the Material Ledger data in the system. Please, check the KBA 1511335 on this topic. Take into account that deactivation means running report SAPRCKMJX, and this report deletes all the Material Ledger data for the corresponding plant.
An alternative would be to use the SLO conversion services so that all Material Ledger data in the tables for currency type 20 are converted to currency type 30. Please, consider that this is a chargeable service.
Transfer Pricing Define Currency + Valuation Profile
You only need the currency and valuation profiles if you want to manage various valuations in parallel in your system
Group and profit center valuation must also be managed correspondingly in the material ledger as a currency type and valuation category as explained in material ledger section.
Typical currency settings with profit center valuation:-
FI: 10, 32
CO: 30
Currency and valuation profile: 10, 32
Material ledger: 10, 32
Profit Center Accounting: 30 and profit center valuation (= 32)
PCA 32 (KSL), 12 (HSL)
Currency type 12 is translated from 32 with Exchange rate type M at current rate
This means that in Profit Center Accounting, only the PCA valuation is available. The legal valuation (10, 30) is no longer available in PCA
Typical currency settings with Group valuation:-
FI: 10, 31
CO: 30
Currency and valuation profile: 10, 31
Material ledger: 10, 31
Profit Center Accounting: 30 and profit center valuation (= 31)
PCA 32 (KSL), 11 (HSL)
Currency type 12 is translated from 32 with Exchange rate type M at current rate
This means that in Profit Center Accounting, only Group valuation is available. The legal valuation (10, 30) is no longer available in PCA
Transfer Pricing Currency setup in Account V/s Ledger approach
The following two functions are available: For your valuation views, you can either use separate ledgers or map multiple valuation views within a ledger.
If you decide on the scenario with separate ledgers, assign a valuation view to a ledger: The legal, group, or profit center valuation view. In this ledger, you can only configure currency types in the appropriate valuation view. The local and global currency are then always configured in the valuation view of the respective ledger.
If you want to use multiple valuation views within a ledger, do not assign a valuation view to the ledger. The local and global currency are then always used in the legal valuation view in this ledger.
Separate ledger approach is available from S/4HANA1610 onwards that means if customers are already using transfer pricing in their source system and doing a conversion to S/4HANA 1610 or higher version then the second approach i.e “Several valuation views within a ledger” would be possible solution.
For further detail you may use this link:-
Why we need to maintain additional parallel currencies for respective valuation i.e. Group or Profit Center ?
This question is asked quite often that why, when you activate profit center valuation, both currency types 12 and 32 need to be maintained in the new currency customizing (transaction FINSC_LEDGER) (similarly, when you activate group valuation, both currency types 11 and 31). ?
Although only one currency type is maintained for a valuation approach in the currency and valuation profile, both currency types of a valuation are necessary for updating data in Controlling. With the introduction of the universal journal, the data model has been simplified and harmonized. The universal journal uses the ledger approach for general ledger accounting and for all subledgers. Therefore, in ACDOCA, the currency types in the company code currency and the ‘global currency’ (currency 2 in transaction FINSC_LEDGER = controlling area currency) must exist for each valuation view.
For more detail you may refer SAP note 2882025
Restriction- ML can not be deactivated in S/4HANA
As of 1709 release , In the case the productive start was carried out and the material ledger postings exist in ACDOCA( = there are BSX line items), and customer wants to change any settings that might influence material ledger postings (change of the CURTPs in ML Type, any customizing change of GL that influence the set up of the table FMLT_CURTP_ML, just to name some of them) then there is no other solution but to introduce the new company code and start from the scratch the ML setup. This is recommendable for the test system.
For detail you may refer OSS note 2512618
Operating Concern Currency
This determines the currency and the valuation view in which the values in CO-PA are to be displayed or planned.
Actual data can be updated simultaneously in all the combinations of currency type and valuation that are described below, planning data is always updated in one currency only – the currency specified for that particular plan version.
If you deactivate the company code currency, you can no longer use plan versions and reports that use the company code currency.
New Asset Accounting Currency
For each currency defined in General Ledger Accounting, you have to create parallel depreciation areas in new Asset Accounting.
Fixed Asset Accounting currently only supports the FI relevant (BSEG-) Currencies.
For additional currency types, which are not BSEG relevant, you do not need to create dep area; these currencies are converted during posting. This means, the sum of all depreciations does not balance with the activation value for the additional currencies.
Introduction of new currencies with S/4HAN 1809
With release S/4HANA OP 1809 it is possible to introduce additional currency, tool allows you to introduce new, flexible currencies for company codes and ledgers that are already used in your production system. Afterward, the newly introduced currencies are available in the Universal Journal (table ACDOCA) and can be used in both accounting specific processes and reporting. The new currency and its calculated value is added to all journal entries that are available in the system.
Limitation
– It is not possible to introduce a BSEG-relevant currency (“2nd or 3rd FI Currency”)
– It doesn’t include reconciliation for entities in asset accounting, controlling, and
inventory accounting.
– Archived data can’t be enriched with the new currency.
For detail refer :- SAP Help- Manage Currencies
For detail understanding on how to configure new asset accounting by aligning the depreciation area /accounting principal with currencies defined in Finance , please refer this blog on S/4 HANA- New Asset Accounting – Considering Key Aspects:-
https://blogs.sap.com/2017/03/25/s4-hana-new-asset-accounting-considering-key-aspects/
Amount Field Length Extension with S/4HANA 1809 release
In SAP S/4HANA, currency amount fields with a field length between 9-22 including 2 decimals have been extended to 23 digits including 2 decimals and how this can be used and what is recommendation for using 23 digit currency please refer detailed SAP note 2628654
If you want to know what should be approach to select appropriate currency type for controlling area , you may read this blog
SAP S/4HANA Controlling Area Currency Type setup
This blog is written based on my own experience and have referred various OSS notes, Your feedback is welcome.
Thanks
Brought to you by the S/4HANA RIG
Ajeet Agarwal
Product Expert (SAP S/4HANA Regional Implementation Group- APJ)
Hi Ajeet, this is Aleksey (worked together in RIG), I pleased to read your blog,
and it's great to see that you consolidated all info about currencies in one place!
It might be useful to add note 2344012 as it contains a lot of helpful info...
And looks like you made a typo:
'31- Group Currency Group Valuation (used in Transfer Pricing)'
Hi Aleksey
Thanks a lot for your feedback , I have included suggested note 2344012.
I could not make out the typo which you are referring as currency type 31 is for Group currency Group valuation and CT 32 is for Group currency PC valuation in TP (might be i am missing something)
The typo that you that you wrote 31- Group Currency Group Valuation (used in Transfer Pricing) , means 31 is not for Transfer pricing
Following CT are used w.r.t transfer pricing i.e
11- Co Code Currency Group Valuation
12- Co Code Currency PC Valuation
31- Group Currency Group Valuation
32- Group Currency PC Valuation
When you define C+V profile you can pick either company code currency or Group Currency and combination of currency type and valuation view determines above mentioned 4 CT those are specifically meant for transfer pricing.
So in this following example combination of CT 30 and valuation view 1 (Group Val) means CT 31
Ajeet - if you define a new currency type X1, then in which all modules(AA,ML,etc) does it need to be extended by mandatory?
Hi Kishore
Fixed Asset Accounting currently only supports the FI relevant (BSEG) Currencies.
For additional currency types, which are not BSEG relevant, you do not need to create dep area; these currencies are converted during posting.
It is on roadmap for later releases, that Fixed Asset Accounting calculates the depreciation with the historic (activation) values in all currencies, but currently Fixed Asset Accounting does this only in the BSEG Currencies, However when this will be available can not be confirmed at this stage.
CO, ML and TP also does not support custom currencies.
Hi Michael Conrad/ Christian Rainer
Thanks for providing additional information and feedback , I have included the same in this blog.
Hi Ajeet,
Nice blog on complex & sensitive area of currencies.
One thing I would like to mention that in S/4HANA, we can also select 20 as the controlling area currency. I see in the above blog it is mentioned as 10, 30, 40, 50 and 60 (20 is missed).
Madhu
Hi Madhu,
Currency Type 20 is not supported as a “2nd or 3rd FI Currency”, which means, it cannot be used as a BSEG relevant currency. But it can be used in the universal journal with same functionality, like any other “non BSEG” currency, e.g. a currency type in customer namespace like Z1. Some processes, e.g. Fixed Asset Accounting depreciations, currently not fully support the non BSEG currency, this means the amounts are converted with the current exchange rate and not with the historic exchange rate of the asset acquisition.
We recommend to use in OKKP a currency type, which can be used as BSEG relevant currency (2nd or 3rd FI currency), because then you have 2 parallel currencies 10 and e.g. 30, which is precisely calculated by all Accounting processes.
If there are reasons you can still use currency type 20 however this is not recommended due to the limitations as mentioned above.
Hi, mister Ajeet.
I need an advice. I'm a consultant for finance and I'm working on the implementation of the S4 HANA system. CO consultant has defined the type of currency in the CO area 30. Do I have to define that currency as parallel to GL in finance? System give me message that I have to. Could I avoid it?
Thanks in advance.
Djuro
Thank you very much - Ajeet
Thanks Ajeet for a great blog. Made it simpler to understand the concept and connections between various components.
Well, We are in process of setting up this in system. completed config and checked the required settings via CKM9 (Plant/Valuation) & 8KEP (Controlling), 8KEQ. Also activated ML thru OMX2, OMX3, OMX1 & then CKMSTART.
The validations worked correctly and we activated Curr profile and Valuation profile at Controlling Area level.
First objective was to see - multiple currencies in Material Master. So far successful. We are able to view the price in Material master in MM in Legal Valuation, CoCd currency & Group Currency, Group-Valuation.
2nd objective was to run a simple transaction and check ACDOCA, ML tables and various currency and parallel valuation reports. However when we try to do MIGO initial Inv.upload system is throwing DUMP error. On quick search it show that it is well known error -
2510625 - Check consistency: Ledger check FMLT_CURTP_ML vs. FINSC_LEDGER
2403356 - Check for Material Ledger Actual Costing Startup (after activation)
2395913 - ML Actual Costing Live (ACT_LIVE) in table CKMLV
While we are looking into it, wanted to check with you if , while your initial set-up did you face such errors ?
Our understanding is that - it is due to mismatch between application maintained data. Realignment is required wrt Data-loads. Wanted to quickly check if you have a Check-list on the MUST-HAVE Config for the set-up described in the blog?
Do we need to fully configure PCA before able to make any entry ? From Currency-matching perspective, In PCA we have set-up profit-center valuation in Group-currency
As per your blog :
FI: 10, 31 (where do I CHECK this ?)
CO: 30 (Yes OK )
Currency and valuation profile: 10, 31 (Yes OK)
Material ledger: 10, 31 (Yes OK)
Profit Center Accounting: 30 and profit center valuation (= 31) - OK
PCA 31 (KSL), 11 (HSL)
Currency type 12 is translated from 31 with Exchange rate type M at current rate
This means that in Profit Center Accounting, only Group valuation is available. The legal valuation (10, 30) is no longer available in PCA.
Further we would want to use TP in future, so we have done required activation, without actually configuring the TP pricing- Is it mandatory to complete the configuration before we can see the results , since we are trying simple Initial-upload (and TP scenario is not triggered right now)
Many thanks for wonderful blog. In anticipation that solution to the doubts asked ( errors) will be answered too.
Best Regards,
Monika
Hi Monika
Below is my answer to your query
FI: 10, 31 (where do I CHECK this ?)
Ans- You may check this in ledger specific currency settings
Further we would want to use TP in future, so we have done required activation, without actually configuring the TP pricing- Is it mandatory to complete the configuration before we can see the results , since we are trying simple Initial-upload (and TP scenario is not triggered right now)
Ans- I don't think there should be any problem if you have setup C+V profile and activated this with required currencies and then in future you may use this process, however I did not tried this so I would suggest to test the behavior.
Thanks
Thanks Ajeet. We have been able to complete the currency settings. also ML set-up works good.
Now configuring TP.
Regards, MP
Thank you Ajeet for sharing your Knowledge.
One question that I have is under section: Typical currency settings with Group valuation:-
Your outline:
Profit Center Accounting: 30 and profit center valuation (= 31)
PCA 32 (KSL), 11 (HSL)
Currency type 12 is translated from 32 with Exchange rate type M at current rate
Is this not how it should look like:
Profit Center Accounting: 30 and Group valuation (= 31)
PCA 31 (KSL), 11 (HSL)
Currency type 11 is translated from 31 with Exchange rate type M at current rate
Thank you Ajeet for such a nice explanation around currency settings. I have couple of questions and appreciate if you can help answering them.
Appreciate your feedback.
Br,
Ram
Hi Ram
The obsolete table FAGL_LEDGER_SCEN contains entries for scenario FIN_PCA or FIN_SEGM. In S/4HANA there is no IMG acitivity available for maintaining the content of this table. The table is regarded as obsolete but it is still evaluated by the system. A consequence of these table entries is that the system regards Profit Center Accounting as active and therefore you need to activate PCA in transaction 0KE5. However this does not mean that classic PCA would be active unless you specificall maintain setting to update in classic PCA table using transaction 1KEF
Also you may refer OSS note 2420147 for more detail on this.
For your second question I would advise to have a detailed understanding on transfer pricing and parallel COGM and then activate C+V profile as per business needs.
Thanks
Ajeet
Thanks Ajeet for the detailed article on currencies. One question I have w.r.t Profit Center Accounting.
In case if a company is legally reporting at a PCA level and my PCA settings are: Group currency: 30 and Valuation view: 0 (Legal valuation). What will be my PCA currency & PCA Legal currency?
As 10,30 are no longer allowed.
Hi Ajeet,
Any news re the current limitations on parallel currencies (ACDOCA) for Fixed assets depreciations ?
Tx & Regards,
Michael
Hi Michael
There is no change w.r.t. Currencies for fixed asset accounting as of 1809 release.
Thanks
Ajeet
This is very helpful, thank you Ajeet!
just wanted to ask how does the company code -ledger settings relate to how you should maintain the TCUR* tables.
Thankyou so much sir, really very helpful. Especially examples
Thanks for sharing valuable information, it’s really very helpful.
Ajeet, Its an amazing article. An articulation of rich experience and quality documentation of the knowledge. Thank you and like others appreciate you for the same.
Kindly find time to respond to below questions, if you come across these ones before
Dear Ajeet,
I am getting in trouble of currency setting now.Our system is Ecc6 EHP4 version.we have a lot of companies has been using sap system for years within in country.Now we have a new company aboroad.
we have CVC profile setting as below,it already been used for years.
now my new company currency setting as below:currency 10,31,12
I still set ML currency type with z100(10,31,12),tick Manual and assign it to plant of new company code.cause I cannot use the first one 0000,if I choose it which lead inconsistance of currency issue and cannot active ML.
When I do cost estimate ,it is ok，but when I mark the price with CK24 for profit center view,it gives me the below error message ,currency type 32 not assign to ML ,CK495
We are already go on live ,I think it should be a disater .we don't have any material movement till now.Could you please help me with this? How can I fix this issue?
Maggie
HI Ajeet Kumar Agarwal,
Thank you for you blog, it’s really really good. Congratulations!
I’ve just two questions:
If we adopt a Multi Valuation Ledger, it’s sufficient just have the 31 and 32 assign to the ledger in FINSC_LEDGER (for example in OSL and VSL) or no? I’m asking this, because I saw that in your example to show the difference between the multi valuation and the single ledger approach, you use also the 11 and 12.
The second one, is related with the source currency for currencies 11, 12, 31 and 32. Should we choose always the source equal to the parent currency?
Like: 11/12 - Source currency 00. And 31/32 - Source currency 10.
Cloud you please share more details regarding the influence of choosing for instance Source "00" or "10" for currencies 11,12,31 and 32?
Thank you, and I hope to see more blogs from you.
Regards,
André
Am a bit confused on Currency Type 20. What if Currency Type 20 is mapped to Currency Key INR & also Currency Type 30 is mapped to Currency Key INR. Will it be the same case or SAP will simply go by the Currency Type & present a problem during migration to S4 Hana?
If in ECC, CO currency is currency type 20 then what is the migrated configuration in FINSC_LEDGER, is KSL field in ACDOCA defaulted to currency type 20 & only used for CO postings, if yes then how is this possible as FI & CO are integrated in Universal Journal?
Does this also mean that if 1st Parallel Currency (second in sequence in OB22) in Co Cd was Group Currency Type 30 then it gets overridden during migration? As KSL will take Currency Type 20 from CO (in my example)?
Hi Jaswinder
Currency type 20 is only known in CO, whereas currency type 30 is known in financial accounting and CO both.
If currency type 20 was already used in CO in SAP ECC, then after migration to SAP S/4HANA the currency configuration, “KSL” field of ACDOCA will be updated with currency type 20 only and with standard its not possible to switch currency type 20 to 30 during system conversion from ECC to S/4HANA.
Currency Type 20 is not supported as a “2nd or 3rd FI Currency”, which means, it cannot be used as a BSEG relevant currency. But it can be used in the universal journal with same functionality, like any other “non BSEG” currency.
This was an excellent blog post thanks for sharing. Here's some details about changing Group in FINSC_LEDGER from 20 to 30 if there has already been postings to the Controlling Area. If 20 and 30 are the same currency it's only a matter of running a program. If 20 and 30 are different currencies then it requires SAP support.
This is from OSS Note 119428:
Question: Can the currency type be changed from 20 to 30 if the currency key remains the same?
Answer: Customizing for the controlling area never allows a change of the currency settings (including the currency type) if transaction data already exists
in the controlling area.
You can use the attached program ZCHGCTYP to change the currency type from 20 to 30. The program is allowed to be executed only if the currency key does not change, meaning the group currency is the same as the currency entered in the basic data of the controlling area up to now. This applies only for this special case if the available transaction data
does not change.
As of 4.6A, this program is no longer required. The currency type can also be changed for dependent data in the controlling area if the currency key is not changed and fits the new currency type.
Caution: If you want to change the currency type to be able to assign new company codes with another currency, the prerequisites from SAP Note 120826 must be met. In particular, note the explanations there regarding the "All currencies" indicator.
Question: Can the currency type be changed from 20 to 30 if the currency key changes and transaction data exists in the controlling area?
Answer: This change is not possible in the standard system. For a conversion on a project basis, please send an e-mail to sap_dmlt_gce@sap.com.
Hi Dan
Thanks for your comments , I would like to bring this piece of information from SAP note 2017890 valid for S/4HANA as well and which must be evaluated as with S/4HANA ML is always active (SAP note 119428 is not valid for S/4HANA releases)
Therefor I would recommend to perform a test in any of the sandbox system & see the impact in case you want to try classic option.
Hi Ajeet,
Thanks for the detailed blog. Quite helpful!
Following text has been updated in the Version 16 of Note no. 2344012 (Dt. 02.03.2021)
By the text I understand that ...
It will be helpful if you can confirm the understanding or correct it.
Thanks
Hi Ajeet,
Thanks for the detailed blog. Quite useful.
Version 16 of the Note: 2344012 has the following text
"Some processes require more that a mere document wise currency conversion with the current rate. These processes require that the amounts are converted with rates of the historical data being processed. This is not yet supported for all processes. We achieved this for open item management in FI-AP, FI-AR, and FI-GL or for CO and GL allocations (marked with X in the above table), but not yet for Fixed Asset depreciations or CO settlements"
By the text we understand that, now we can convert values for the additional currency type with exchange rate type other than M
For example: Values in Currency Type 31 can be converted at plan rate or average rate (except for Material valuation).
It will be helpful if you can confirm the understanding or correct it.
Thanks
Hi Hitesh
I can give one example where you may observe that there is some leftover amount in additional currencies even after settlement.
Lets say you have ACDOCA additional currency which is not an FI (BSEG) or CO currency and you keep on posting on internal order during the month and at the time of posting to IO system considers the exchange rates for all the currencies defined in TCURR and updates in ACDOCA accordingly , when you do the settlement then the overall settlement amount is considered for additional currency and the exchange rate as on settlement date is applied and if there is difference in original posted exchange rate v/s settlement date exchange rate then you may observe some left over only in additional currency. However SAP is already fixed this issue with latest release i.e SAP S/4HANA 2020 wherein if you setup the config within settlement profile then there would not be any imbalance in additional ACDOCA currency for settlement process.
Thanks
Hi Ajeet,
The article is really very nicely put together. Its very helpful.
I have a question
How can we assign a new freely defined currency to an existing ledger which has postings?
I tried doing it, it shows that it may cause inconsistencies in the system.
Can you help in this regard.
Thanks in advance.
Nicky
Hi Nicky
With release S/4HANA OP 1809 it is possible to introduce additional currency types to a ledger in the universal journal.
Limitations:
For details on the introduction of additional currency types, please see SPRO -> Financial Accounting (New) -> Financial Accounting Global Settings (New) -> Tools -> Manage Currencies -> Information: Manage Currencies.
The Manage Currencies tool consists of several activities. These activities include the necessary configuration steps in the Preparatory Phase as well as necessary conversion steps in the Execution Phase. These steps must be completed to ensure that new currencies are consistently introduced. This tool reconciles general ledger accounting data as well as the journal entries that were posted in the current fiscal year. This means that journal entries and entities that are used for reporting in external accounting, are completely reconciled and rounding differences are posted.
This tool doesn’t include reconciliation for entities in asset accounting, controlling, and inventory accounting.
For further detail you may also refer SAP Note 2334583
Thanks
Hi, I have the following problem: when balancing an invoice in foreign currency with relative exchange rate delta, the system generates me a fourth line only of CO with amounts of the various currencies to zero except for the global currency field ACDOCA-KSL with amount equal to the exchange rate. What is the reason why this amount does not go to the exchange delta line of FI instead? Best regards LeoHello Sir,
My client is doing business in Company Code Currency (currency type - 10) in USD and we have ONLY USD currency define as local, global and CO object currency in our ledger. My client don't want to post any transaction (any transaction code through all module) other that USD currency, I mean no any foreign currency. Could you please let me know how can I make necessary change in current system. I know there is do through substitution rule but I am not technical knowledge, I am in functional area.
Thank you and appreciate for your time,
Chetan Bhatt
Hi, Ajeet,
Thanks for sharing!
I guess you'd better change the statement below:
Currency Type 70 Object currency (CO)
Each object in Controlling, such as cost center or internal order, may use a separate currency specified in its master data. When you create an object in CO, the SAP system defaults the currency of the company code to which the object is assigned as the object currency. You can specify a different object currency only if the controlling area currency is the same as the company code currency. There is an object currency for the sender as well as one for the receiver.
For internal order, this is true. However, for cost center, this statement is not correct.
Please check SAP note:
1601508 - Cost center currency cannot be maintained - SAP ONE Support Launchpad
Hi Ajeet, Very informative blog and helped to set up multiple valuations. Many thanks!
Could you shed some more light on currency types 11, 12, 31, 32 - Are these all mandatory to be maintained in following configuration, if we want to have three valuations - legal, group and profit center?
Or would following setup be sufficient:
Legal Valuation: CC Currency type 10
Group Valuation: Group Currency type 30
PC Valuation: GrpCurr, PCcurr type 32
Br, Abhinay
This question is asked quite often that why, when you activate profit center valuation, both currency types 12 and 32 need to be maintained in the new currency customizing (transaction FINSC_LEDGER) (similarly, when you activate group valuation, both currency types 11 and 31). ?
Although only one currency type is maintained for a valuation approach in the currency and valuation profile, both currency types of a valuation are necessary for updating data in Controlling. With the introduction of the universal journal, the data model has been simplified and harmonized. The universal journal uses the ledger approach for general ledger accounting and for all subledgers. Therefore, in ACDOCA, the currency types in the company code currency and the 'global currency' (currency 2 in transaction FINSC_LEDGER = controlling area currency) must exist for each valuation view.
For more detail you may refer SAP note 2882025
BR, Ajeet
thanks Ajeet.