Last Review: 16th August 2019

Remarks: This blog will be updated accordingly

Reading Time: 5 minutes

Currencies S4 HANA Public Cloud – Third Currency and Conversion Settings

 

Context of the standard functionality As Is 1905 – Currencies

 

Currently, in S4HC, there are only 2 currencies available, the Local currency and the Group currency, where the local currency will always be the country of activation currency and the Group currency can be freely defined by the customer.

 

Context of the standard functionality As Is 1905– Conversion Settings

 

Currency Conversion Basis

 

The value for the two currencies can be based on the document currency value or another currency value

Ø  E.g. the group currency value can be calculated from

    • Document currency value or
    • Local currency value

Note! This can be defined via Expert Configuration/Customer Request process via WSR

 

Date Type for Currency Conversion

 

Ø  The date for the exchange rate is determined by either:

    • Document date
    • Posting date
    • Translation date

Ø  For the Local Currency the Translation date is always used (and it is by default the same as Posting date)

Ø  For the Group Currency the date for the currency conversion can be set to any date

Note! This can be defined via Expert Configuration/Customer Request process via WSR

 

 

 

Context of the standard functionality To Be 1911/2002 – Currencies

 

The third currency (Freely Defined Currency) is planned to be released in 1911 as partial delivery and finally in 2002.

 

Currencies in S/4HANA Cloud

Local currency

Global currency

Free
currency

 

Ø  SAP S/4HANA will support up to 3 currencies

    • Per company code and ledger 2 fix currencies and 1 freely defined currency
    • Local currency = Company code currency is the currency of the country
    • Group currency defined on system-level and are the same for all ledgers
    • New currency types can be configured in customer namespace e.g. Z1
    • The freely defined currency for parallel G/L ledgers do not depend on the leading ledger, you can configure the freely defined currencies in each ledger independently
    • Real-time currency conversion in Accounting Interface with balance zero per document for all currencies
    • The freely defined currencies are integrated into several business processes (e.g. Open Item Management), for some specific business processes differences might occur (“Clearing effects “)

 

Context of the standard functionality To Be – Conversion Settings

 

Currency Conversion Basis

 

The value for three currencies can be based on the document currency value or another currency value

Ø  E.g. the group currency value can be calculated from

    • Document currency value or
    • Local currency value

Note! In the future, this will possible to set via SSCUI

 

Date Type for Currency Conversion

 

Same as in As IS.

Note! In the future, this will possible to set via SSCUI

 

Additional Resources

A PPT is published under the link below, published in the Community:

https://s4hanacloud.community.sap/groups/gWegOMXcBpa2cguppVggqF/documents/HslOQeKafJhnjxTkJxmgn5/versions/1517372/slide_viewer

 

3rd currency in Innovation Discovery portal: