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Data Management and Landscape Transformations – Currency Conversion Services Overview and Insights

Introduction and Problem statement:

You need to change or add or delete currencies in your SAP system, somewhat like it happened during the EURO conversion end of the 20’st century.

You as a SAP customer would like information relating to currency conversion service directly from SAP as your trusted advisor.

You would like to know specifics about the currency conversion service (and maybe others, too).

You would like to know how you can receive support from SAP to execute your currency conversion requirements.

Your way forward:

For address these problems, SAP DMLT’s (AKA SLO) currency conversion background and consulting team can help you!

You may also visit the following portal: https://support.sap.com/en/offerings-programs/support-services/data-management-landscape-transformation/unifications.html for more information.

For a deeper dive into your particular requirements, you may want to get in touch with me / the experts behind this blog or via our global customer engagement team: SAP_DMLT_GCE@sap.com

The technical tricky background

Currency changes in a production SAP system are a common regular requirement, but not easy to conduct by customers themselves, but only by high skilled SAP experts.

In consequence, this is a common and regular service request that SAP DMLT currency experts and currency services can assist you with.

Our services were created by and by, when the EURO Monetary Union wave affected our customers’ SAP systems.

Below a small overview on the most common currency types and their role and place in a SAP system, which you may want to change or introduce:

Type Remark Definition in table
10 Company Currency, First LC T001 (Company level)
30 Group Currency T000 (Client level)
40 Hard Currency T005 (Country level)
50 Index Currency T005 (Country level)
20 CO Area Currency TKA02 (CO Area level)
90 Profit Center Currency TKA02 (CO Area level)
0 Transaction Currency

 

 

And whether there are huge local or regional new legal or business function requirements, we are at your service.

We may talk about the classic currencies used in FI or CO, or what to do for Material Ledger (ML) scenarios. A common customer currency project driver is the need to comply with the new, dedicated valuation and reporting demands.

Customers can do currency customizing and setup only when you start your company code currency live. Upon the first significant amount of data you posted, the definition is set, changes are gone. Normally.

But who knows what future holds, what your companies valuation reporting requirements will become? This is, where the DMLT currency team comes into play.

Below a common overview on currency type settings in different currency type valuation scenarios, where ML can or has to be in use

Realization of parallel amount / good flows – only in combination with currency type 10 or 30
0 – legal valuation (ML optional)
1 – group valuation (ML must)
2 – profit center valuation (ML must)
Examples
31 – Group currency with group valuation
12 – first local currency with profit center valuation

Below you see a sample list of some use case areas in SAP , the ECC view on currency types, application areas, and the variations you have in that so to speak:

Application LC1 LC2 LC3
General Ledger (definition OB22) 10 30, 40, 50, 60 30, 40, 50, 60
Also used in FI-CA
Asset Accounting (AA) – dep area 10 (leading area 01) See GL (par. DA) See GL (par DA)
Controlling 10 (object curr) or blank 10, 20, 30, 40, 50 (CO area curr) n/a
Material Ledger (CKMLCT) 10 10, 30, 40, 50 10, 30, 40, 50
Classic PCA (table GLPCT) 10 (HSL fields) 10, 20, 30, 40, 50, 90 (KSL fields) n/a
Profitability Analysis 10 (12) B0 (B2) n/a

Conclusion

Changes in a mature SAP system on currencies in FI / CO is very delicate. DMLT is here to help and assist you.

Customers who try to adjust or change local currencies in FI/FI-AA/CO etc. by themselves in live systems typically fail hard.

Nowadays, with S/4HANA as flagship product, the challenges are more multifold, and decisions for future road map need careful considerations and planning before starting your journey.

Best practice as of today is, you tackle your currency setup before you start your S/4HANA journey.

If you are interested in this topic or already know that you need support from SAP DMLT for such a service, please contact us at  SAP_DMLT_GCE@sap.com.

And: Do not confuse when you only hear ‘EURO’. This is just a placeholder for any of the ISO currencies, you are thinking about.

The important thing for you to know: Yes, some customers can do a mere pure company code conversion in ECC by themselves. But all other categories, like parallel currency introduction, decimal adjustment, selective local currency conversion, group currency, retroactive introduction of new currencies, Swap of Currencies, deletion of currencies – this is the home turf of DMLT only.

Local Currency Conversion (LCC) -> EUR conversion („the Mother“) All local currencies by currency level ERP standard
Selective LCC LC1 by currency AND company level ERP standard + DMLT tool
ParC Conversion FI+AA Introduction / Change of LC2 / LC3 (Conv – Del – Copy) DMLT tool (OSS note 33919)
CO area Change CO area currency DMLT tool
ML, CO-PA, Classic PCA Change ParC DMLT tool
KalleW (TKA00-ALLEW) Populate object currency in CO DMLT tool (KalleW)
Currency Key Rename (+LCC) Decimal places DMLT tool (+ ERP standard)

To give you a small overview on  typical SAP currency notes, to get an idea about the bandwidth we  speak about, you may want to digest and discuss some of the below.

Currency conversion in ERP:

Currency conversion in BW:

Currency conversion in CRM:

Currency conversion in SEM:

Currency conversion in SCM/APO:

Currency conversion in SRM:

 

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