Posting without Parallel Currencies

When an activation group is activated in a system that is connected to SAP, the application must convert the capitalization value from contract currency to the local currency:

  1. The application verifies the Exchange Rate Type configuration table to get the exchange rate type (M).
  2. The application sends the exchange rate type M, the contract currency (Currency From) and the company code currency (Currency To) to SAP to get the exchange rate. The application stores this rate in the Exchange Rate configuration table to record all of the historical rates.
  3. The application calculates the asset capitalization amount in the company code currency, and sends this amount to SAP.
  4. The application sends the liability values in contract currency to SAP.

If the application is operating in standalone mode:

  1. The application verifies the Exchange Rate Type configuration table to get the exchange rate type (M).
  2. The application looks up the exchange rate type in the Exchange Rate configuration table, and retrieves the exchange rate to use.
  3. The application calculates the asset capitalization amount and posts it to the internal tables.
  4. The application posts the liability values in contract currency to the internal tables.

Postings for payments, accruals, and charges are performed in the contract currency, and no currency translation is required.

The application uses a weighted average exchange rate to convert depreciation amounts in contract currency to company currency.

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 also 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.

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