Posting Foreign Currency Doc. Header Currency / RateCAD.95 Conversion Date05/31/YYYY Line Items Amount 2062 CAD Exchange Rates 04/30/YYYYCAD USD.95 05/31/YYYYCAD USD.97 L/C Amount 2000

FI-View Four out of six currencies per company code Automatic calculation of currencies Display of currencies in the document Selection of exchange rate type, source currency and type of translation date Valuation differences can be posted separately FIDocument Transact.Currency LocalCurrency Addition. Curr. 1 Addition. Curr. 2

Target Group Companies that have to do internal and/or external reporting in additional currencies Companies that are located in a country with high inflation Multinational Groups

Possible Currencies (FI) Local Currency (company code) Transaction Currency Group (client) Currency Global Company Currency Hard Currency (country level) Index Currency (country level)

Additional currencies in FI Example of currency types in a Multinational Group: German Group Group Currency DEM USGermany Mexico Transact. Currency Local Currency Group Currency Hard Currency XXX XXX XXX USD DEM MXP DEM DEM DEM USD

Related Subject: Cross Rates In the system the translation from one currency to another can be done using a base currency. The translation in this case is done currency A base currency currency B When this option is used, the translation rates only have to be maintained from the foreign currency to the base currency.

Integration FI to LC FI-CO Integration SD-FI/CO Integration MM-FI Integration

FI to LC FI Example: US group who owns 1. Company in Holland that has a branch in Germany 2. Company in England that has a branch in France CompanyTransact.LocalCompanyGroup 1CurrencyCurrencyCurrencyCurrency 1CurrencyCurrencyCurrencyCurrency GermanyXXXDEMNLGUSD FI CompanyTransact.LocalCompanyGroup 2CurrencyCurrencyCurrencyCurrency 2CurrencyCurrencyCurrencyCurrency FranceXXXFRFGBPUSD LCCountryCompanyGroup LCCountryCompanyGroup CurrencyCurrency Comp.1Comp.2 HollandNLGUSD EnglandGBPUSD

Integration FI-CO: Case 1 FIFI expenses Example: A Mexican subsidiary owned by a German Company 1:1 Relationship between Company Code and Controlling Area Currency of CO Object: e.g. cost center, internal order or project Mexico TCLCGCHC CADMXPDEMUSD ControllingAreaMexico TCOCCAC CADXXXMXP COCCACOCCA

Integration FI-CO: Case 2 COCCACOCCA expenses at 揾 istoric?values Co-Area and Group Example: Mexican and Argentinean Sub- sidiary owned by a German Company Mexico TCLCGCHC ITLMXPDEMUSD Argentina TCLCGCHC GBPARSDEMUSD FIFI FIFI ControllingArea South America TCOCCAC GBPARSUSD ITLMXPUSD

Integration SD-FI-CO COCO FIFI revenues Currency of operating concern BillingTCGBP SDSDRevenues TCLCGCHC GBPMXPDEMUSD CO-PA TCOC GBPXXX

MM-FI Integration without Material Ledger MMMM FIFI MMMM goods issued with new value Material Master LCMXP Stock after 1. valuation LCMXP Costs TCOCCAC MXP MXPUSD stock value TCLCGCHC MXP MXPDEMUSD stock value COCO purchasing transaction

MM-FI Integration with Material Ledger MMMM FIFI MMMM With material ledger: only periodical average price in all currencies price in all currencies Stock LCGCHC MXPDEMUSD Stock value and expenses TCLCGCHC MXPMXPDEMUSD Stock after 1. valuation LCGCHC MXPDEMUSD stock value new stock value purchasing transaction