Posting with Parallel Currencies

If the ERP system is configured with multiple currencies, the application can be configured to support parallel currencies for postings made to that system.

Note that currency translation differences will occur on the offsetting account, so liabilities and assets may not be cleared in all currencies.

With parallel currencies enabled, the Exchange Rate Type configuration table defines more information than just the exchange rate type.

Note: If the application is connected to an S/4HANA ERP, the switch "Send Negative Group Currency Amounts in Asset Documents" should be enabled in the Nakisa AdminConsole.

If the application is connected to an ECC6 ERP and the activation group is activated:

  1. The application verifies the Exchange Rate Type configuration table and looks up the currency type 10 for contract to local currency conversion. From the extended configuration, the application gets:
    • Exchange Rate Type: M
    • Target Currency: The configured company code currency.
    • Source Currency: The application looks up the contract currency.
    • Translation Date: For the contract to first local currency, the currency translation date is always the Posting Date.
  2. The application sends all of the parameters to SAP to get the exchange rate from the contract currency to the company code currency.
  3. The application calculates the asset capitalization amount in the company code currency, and sends it to SAP.
  4. From the asset capitalization document from SAP, the application fetches the amounts and rates for all of the other group currencies available. The application stores all of the amounts and rates in database tables.
  5. The application sends all of the returned amounts to SAP for the liability postings.

If the application is connected to an S/4HANA ERP and the activation group is activated:

  1. The application verifies the Exchange Rate Type configuration table and looks up the currency type 10 for contract to local currency conversion, as well as the other configured exchange rate types. From the extended configuration, the application gets:
    • Exchange Rate Type: M
      • Target Currency: The configured company code currency.
      • Source Currency: The application looks up the contract currency.
      • Translation Date: For the contract to first local currency, the currency translation date is always the Posting Date.
    • Exchange Rate Type
      • Target Currency: The local currency.
      • Source Currency: The application looks up either the contract currency or the company code currency.
      • Translation Date: The application can use the Posting Date, Document Date, or Translation Date.
  2. The application sends all of the parameters to SAP to get the exchange rate from the contract currency to the company code currency, and from the contract currency to the other group currencies available.
  3. The application calculates the asset capitalization amount in the company code currency and group currencies, and sends all of the information to SAP for all depreciation areas and for liability postings.
  4. The application stores all of the amounts and rates in database tables.

Note: If the application is not connected to SAP, it looks up all of the exchange rates from the Exchange Rate configuration table (instead of getting the rates from SAP).

Payment, accrual, and charge values are sent in all configured currencies (configured in the Nakisa AdminConsole). It is possible to specify the Translation Date or Exchange Rate for the conversion from contract currency to company currency (instead of using the configuration settings). Note that for the conversion to other local currencies, the configuration settings are always used.

When a payment, accrual, or charge posting is triggered:

  1. The application looks up the Exchange Rate Type configuration table to retrieve:
    • Currency type 10 (Exchange Rate Type M) for the parameters to calculate the amounts in local currency.
    • Other configured exchange rate types (e.g., GRP) for the parameters to calculate the amounts in group currencies.
      • Exchange Rate Type
      • Target Currency: The local currency.
      • Source Currency: The application looks up either the contract currency or the company code currency.
      • Translation Date: The application can use the Posting Date, Document Date, or Translation Date.
  2. To override the configuration settings for the conversion from contract currency to company currency, set one of the following fields in the Post pop-up:
    • Translation Date: Specify which date to use when looking up the exchange rate in SAP.
    • Exchange Rate: Specify the exact exchange rate to use. Note that if both fields are set, the application uses the specified Exchange Rate.
  3. The application calculates the amounts in all of the available currencies, and stores the amounts and rates in database tables to keep the historical rates.
  4. The application sends the amounts in all currencies to SAP.

If there are multiple depreciation areas for the company code, the application verifies the Depreciation Area Currency configuration table to determine the order of depreciation areas to post to, as well as the currency to use for each depreciation area. The application uses a weighted average exchange rate to convert the amount to the different depreciation area currencies.

When there is a negative ROU delta amount (e.g., following a lease modification for Decrease Asset Value or Decrease Lease Term, or a reassessment to add a Reduction term), the application uses a weighted average exchange rate. If the amount is positive, the application uses the spot rate to convert the amount to company and group currencies (if SAP supports receiving amounts in group currencies from the application). See Weighted Average Exchange Ratefor more information.

See also:  

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