To define and manage the relationship between two currencies in SAP FI, we use exchange rates. It is also used to translate an amount into another currency.
Exchange rates are defined in the system for the following purposes :
Posting and Clearing : It translates amounts posted or cleared in foreign currency or checks a manually entered exchange rate during posting or clearing.
Exchange Rate Differences : It is used to determine gains or losses from exchange rate differences.
Foreign Currency Valuation : It is used to evaluate open items in foreign currency and foreign currency balance sheet accounts as part of the closing operations.
