Define currency translation keys

When you execute a drill-down report, you can display value columns in another currency using the function Settings -> Currency. In this step you maintain the currency translation types to be used for translating value columns. These translation types are valid for all operating concerns and therefore can be used for all reports in Profitability Analysis.

Activities

1. Define your currency translation types. Specify the following:
a) a descriptive text
b) the exchange rate type (historic rate, average rate, and so on)
c) the currency into which you want to translate
2. Specify whether the rate is an inverse exchange rate.
A translation type with an inverse rate is useful when the amounts have already been converted and need to be returned to the original values.
3. Specify whether the currency translation type should use a fixed or a variable translation date.
A fixed translation date is either a prespecified date or the day on which you execute the program. The date fixed here, together with the exchange rate type, determines the rate used later for the currency translation.
For variable translation dates, the date selected in the information system (period or fiscal year) determines the rate for each data record. Here you need to specify the time reference (beginning of period or end of year, for example). This enables you to translate each record with the rate that was valid at the beginning of the corresponding period.
Note: You cannot create a date field as a characteristic in Profitability Analysis. Consequently, the option "Time base to the day" is not available here.
4. Save your translation types.

Example of a currency translation type with inverse exchange rate

You have maintained the following rates:

DEM USD 1.60

USD DEM 0.63

When translating from USD to DEM with an inverse rate, the system uses the rate 1/1.60 = 0.625 instead of 0.63.

Further notes

The column "Specific translation type" is not used in Profitability Analysis.

The translation types do not affect currency translation during the actual data transfer.