ERROR WHILE CREATING PO
Enter rate JPY / GBP rate type M for
13.03.2021 in the system settings
Contributed by
PREETHAM B E
Under the guidance of
Mr. Nayan r patil
Mentor
Mr. PRASHUN SHETTY
www.sapguruindia.com
contact:+916360959192
Page1|5
Error while CREATING PO
Enter rate JPY / GBP rate type M
Problem:Here in this case a vendor from japan having a currency Japanese yen (JPY)
Origination in Germany having currency pounds (GBP)
While creating PO the following error occurred.
www.sapguruindia.com
contact:+916360959192
Page2|5
Analysis:We need to maintain the exchange currency rate type M.
NOTE (BASIC SENARIO): In India, Financial statements are prepared in Rupee, which is the reporting currency. All
the transactions are done in rupee and, therefore, recorded in rupee. However, if
enterprise has the transactions in another currency, say, in US, dollars, because the
enterprise is making export sales or importing material, plant or taking loan from abroad,
in these cases, transactions shall be in foreign currency but recording and reporting has
to be done in rupee, then the question of translation of foreign currency transaction in
INR arises.
Currencies:Currencies are legal means of payment in a country.
For each monetary amount that we enter in the SAP system, we must specify a currency.
Currencies are entered as per ISO standards, for example, USD for US dollar, INR for
Indian Rupee.
EXCHANGE RATE:Relationship between two currencies in known as Exchange Rate and exchange rates
are used to translate an amount in to another currency.
We define exchange rates in the system for the following purposes:
•
Posting and Clearing
To translate amounts posted or cleared in foreign currency, or to check a manually
entered exchange rate during posting or clearing.
•
Exchange Rate Differences
In order to determine gains or losses from exchange rate differences.
•
Foreign Currency Valuation
To valuate open items in foreign currency and foreign currency balance sheet accounts as
part of the closing operations.
www.sapguruindia.com
contact:+916360959192
Page3|5
Note: Exchange rates are defined at client level and therefore apply for all company codes
Solution: We need to maintain the exchange currency rate type M.
➢ Exchange rate types (
Path: SPRO ⇒ SAP Net weaver⇒ General Settings ⇒ Currencies ⇒ Check Exchange rate types
There are 3 types of currency translation exchange rate types in SAP
1. B – Selling Rate Imports/Expenditure
2. G - Buying Rate Exports Purpose
3. M – Average rate. When posting and clearing documents, the system uses the exchange
rate type “M”(CHECK BOX SHOULD TICK ✔,)
www.sapguruindia.com
contact:+916360959192
Page4|5
www.sapguruindia.com
contact:+916360959192
Page5|5
➢ Enter Exchange rate types
Path: SPRO ⇒ SAP Net weaver⇒ General Setting’s ⇒ Currencies ⇒ Enter exchange rate
You need to check is there any exchange rates presents for GBP TO JPY
•
There’s no entry present
•
We need to create an entry.
www.sapguruindia.com
contact:+916360959192
Page6|5
•
Click on new entry
From BGP TO YEN 151is the conversation rate
•
New entry created
www.sapguruindia.com
contact:+916360959192
Page7|5
➢ Run PO
PO created successfully (4500017924)
www.sapguruindia.com
contact:+916360959192
Page8|5
➢ Post GR (50002)
www.sapguruindia.com
contact:+916360959192
Page9|5
➢ Post Invoice
NOW You can display currency in both GBP and JPY
a. IN JPY
www.sapguruindia.com
contact:+916360959192
P a g e 10 | 5
b.
IN GBP (LOCAL CURRENCY )
www.sapguruindia.com
contact:+916360959192
P a g e 11 | 5
© Copyright SAP GURU INDIA
The copyright in this work is vested in SAP GURU INDIA. Please note and
abide by copyright laws. This presentation is for educational purposes only.
All logos, photos and information etc., used in this
presentation are the property of SAP GURU INDIA.
www.sapguruindia.com
contact:+916360959192
P a g e 12 | 5