861965 - overview of currency settings for transfer prices

7/24/2019 861965 - Overview of Currency Settings for Transfer Prices

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SAP Note

Header Data

Symptom

You require information about the currency settings in Accounting and in the material ledger formultiple valuation approaches or transfer prices in classic Profit Center Accounting and in GeneralLedger Accounting (new).

In addition, you require information about how the values are determined in the profit centervaluation or in the group valuation.

Other Terms Currency, multiple valuation, OKKP, 0KE5, OB22, OMX2, 8KEQ, 8KEM,C+091, C+ 091, KT354, KT 354, TP_PREPARE_ACCCR_SD, TP_PREPARE_ACCCR_FITP_PREPARE_ACCCR_IV

Reason and Prerequisites

You want to activate multiple valuation approaches/transfer prices in classic Profit CenterAccounting or in New General Ledger Accounting.

Solution

For more information, see the following documentation in the SAP Library/Knowledge Warehouse:

l SAP ERP Central Component -> Accounting -> Enterprise Controlling -> Profit Center Accounting(EC-PCA) -> Multiple Valuation Approaches/Transfer Prices

l SAP ERP Central Component -> Accounting -> Financial Accounting -> General Ledger Accounting(FI-GL) (New) -> Business Transactions -> Multiple Valuation Approaches/Transfer Prices

The following currency settings determine the value flow:

1. The currency and valuation profile is the central starting point for the multiple valuationapproaches. In the currency and valuation profile, you determine which valuation approaches thesystem technically manages in parallel for postings between the individual components.

Setting the profit center valuation in the currency and valuation profile is useful only ifclassic Profit Center Accounting or the profit center scenario in New General Ledger Accountingis active. If you have an entry with the profit center valuation in the currency and valuationprofile, you MUST set the profit center valuation in Profit Center Accounting.

For more information about the currency and valuation profile, see Note 122008.2. Which settings you can make in the currency and valuation profile depends on the currency type

in the controlling area (transaction OKKP). For more information about the currency type in CO,see Note 120380. In CO, the multiple valuation approaches are stored in delta versions. For moreinformation about this, see Note 122008.

3. To determine which currencies are used in the material ledger, you use the settings in thematerial ledger type, which is assigned to valuation areas (transaction OMX2). For moreinformation about this, see Note 122008.

4. If you use the transfer prices only in classic Profit Center Accounting, the settings ofparallel currencies in FI are optional (transaction OB22). For more information about this, seeNote 122008.

If you want to use transfer prices in New General Ledger Accounting, the settings of parallelcurrencies in FI are mandatory. The multiple valuation approaches are saved using the parallelcurrency method in FI.

However, in principle, the valuation approach (currency and valuation) in transaction OB22should be the same as the valuation approach from the currency and valuation profile, so thatcontinuous currencies are used in the application components. Otherwise, there may be incorrectcurrency translation differences in the parallel valuation amounts, for example, between thelocal currency and the group currency. As amounts in multiple valuations are always convertedautomatically using the exchange rate type 'M' in many SAP applications , you should similarlyalways maintain the exchange rate type 'M' in transaction OB22 for multiple valuation views.

861965 - Overview of currency settings for transfer prices

Version 8 Validity: 28.01.2015 - active Language English

Released On 28.01.2015 11:10:44

Release Status Released for Customer

Component EC-PCA-TP Transfer Prices

Priority Recommendations / Additional InfoCategory Consulting



5. You determine which currency and which valuation is updated in Profit Center Accounting in thecontrolling area settings of Profit Center Accounting in PCA Customizing (transaction 0KE5).

In Profit Center Accounting, only ONE valuation approach is used. This means that if you decideto use the profit center valuation, the legal approach is no longer available in PCA. The fieldfor the local currency value contains the local currency amount in the profit center valuationinstead of in the legal valuation. If you require the update of the legal values to bestructured according to profit centers in parallel, this must be executed in parallel in an FI-SL ledger with a structure that corresponds to the fields of Profit Center Accounting.

After you activate a valuation that is not equal to the legal valuation, it is no longerpossible to update the transaction currency.

You determine which currencies and which valuations are updated in New General Ledger Accountingin the parallel currencies in FI (transaction OB22).

The objective is to manage a continuous currency in Profit Center Accounting, starting from thecurrency and valuation profile and the material ledger. In the controlling area, the currency typemust be 10 or 30. This determines the options of the currency and valuation profile, which thenaffects the currency settings in the material ledger.

Determination of the values in SD, MM, and FI postings

For MM postings, the material ledger returns the values in the parallel valuation approach for thestock lines. For a profit center change between affiliated companies, the value of the consumptionlines is found using the PCA price determination for the transfer price (transaction 8KEZ).

For SD postings, the value in the parallel valuation is found using user-defined conditions in thepricing procedure (for example, PC00 and PCVP for the profit center valuation, KW00 for the groupvaluation). For sales to third-party companies (external sales of a group) in group valuation, the

revenue side is displayed using PR00 and, if required, markups and markdowns by default. This occursautomatically. This means that a condition type for the expenses from group view is not required inthe pricing procedure and is ignored if it exists. The translation of the non-statistical conditions(for example, legal price, markups and markdowns) is not done using transaction OB22 in FI but usinga transfer price module in SD instead. The exchange rate type 'M' is used.

For manual FI postings (for example, transactions FB01 and FB50), values cannot be specified in theparallel valuation.

For invoice receipts using transaction MIRO, only legal values from the purchase order are used; itis not possible to specify parallel values in a different valuation. Therefore, invoice receiptsfrom affiliated companies (company code overlap) must be posted using IDOC. In IDOC, the multiplevaluation approaches are transferred from the internal billing document to the invoice receipt.

See also the documentation about mapping the transfer prices in the individual applications in theSAP Library.For more information, see Note 458543.

How are the values for the PCA value fields calculated?

Since the transaction currency is not updated, the value fields for the company code local currency(field HSL) and for the PCA local currency (field KSL) remain. When the values are transferred fromthe posting interface, the system first checks whether there is a value with the relevant currencytype (currency and valuation). If there is not, the system checks for a value in the target currencyin the legal valuation. This is different for transfer prices - in this case, the system has tocheck for a value in the target valuation (profit center valuation or group valuation). The targetcurrency is then created with the exchange rate type M, using a currency translation with thecurrent exchange rate from the translation table. Therefore, the PCA value fields are either filleddirectly or calculated.If you set the profit center valuation in local currency in the currency and valuation profile, thefield HSL is filled directly with the value from the posting interface. The field KSL (PCA localcurrency) is translated with the exchange rate type M on the basis of the HSL value with the currentexchange rate from the translation table. If you set the profit center valuation in group currencyin the currency and valuation profile, the field KSL is filled directly with the value from theinterface. The field HSL (company code local currency) is translated with the exchange rate type Mon the basis of the KSL value with the current exchange rate from the translation table.You can also set the currency type 20 or 90 for transfer prices in Profit Center Accounting. Thecurrency type 20 is recognized in CO only, and the currency type 90 is recognized in Profit CenterAccounting only. Since currency rows with the currency types 22 or 21, or 92 or 91, can never bedelivered for FI/SD/MM postings, the values of the PCA value fields are then always filled from thedelivered values in the profit center valuation or group valuation. If the requested currency isdelivered, the value is copied. If the value is required in another currency, a currency translationis executed at the current exchange rate.

Examples:

Abbreviations for currency and valuation combinations:- Legal company code currency (10)

- PCA company code currency (12)- Group company code currency (11)- Legal group currency (30)- PCA group currency (32)- Group group currency (31)

Typical currency settings with profit center valuation:FI: 10, 32CO: 30Currency and valuation profile: 10, 32Material ledger: 10, 32



Profit Center Accounting: 30 and profit center valuation (= 32)

It is common to set 30 in the controlling area, 10 and 32 in the currency and valuation profile, and10 and 32 in the material ledger. If you then set the profit center local currency type to 30 andprofit center valuation in Profit Center Accounting, the currency type 32 is continuously used. InProfit Center Accounting, 32 is updated as profit center local currency in the currency field KSL.The company code local currency in the profit center valuation (12) is then translated from thevalues 32 with the exchange rate type M with the current exchange rate from the translation table(and updated in the field HSL). This means that in Profit Center Accounting, only the PCA valuationis available. The legal valuation (10, 30) is no longer available in PCA.

Typical currency settings with group valuation:FI: 10, 31CO: 30Currency and valuation profile: 10, 31Material ledger: 10, 31Profit Center Accounting: 30 and group valuation (= 31)

In Profit Center Accounting, 31 is updated as profit center local currency in the currency fieldKSL. The company code local currency in the group valuation (11) is then translated from the values31 with the exchange rate type M with the current exchange rate from the translation table (andupdated in the field HSL). This means that in Profit Center Accounting, only the group valuation isavailable. The legal valuation (10, 30) is no longer available in PCA.

Known warning messages and errors

Warning message C+ 091:When you activate the transfer prices, the system checks whether all currency/valuation approachesfrom the currency and valuation profile can be found in the material ledger. This is required forconsistent Customizing. The system then also checks whether all currency/valuation methods are inthe currency and valuation profile. If this is not the case, the system issues warning message C+091. Example: The currency and valuation profile uses 10 and 32, and the material ledger uses 10, 32and 30. The background for the message is that the additional valuation approach from the materialledger has no significance for the parallel valuation approaches. If you selected the profit centervaluation in the currency and valuation profile, and it was therefore also maintained in ProfitCenter Accounting, the legal value of the group currency cannot be used in Profit Center Accounting.However, the values can be used in a parallel currency in FI. For a report, this data can be usedonly in a comparison with the material ledger data.

Error message KT 354:You try to assign a currency and valuation profile that manages only valuation approaches in companycode currency to a controlling area with the currency type 30. However, the system requires at leastone valuation approach in group currency. For more information, see SAP Note 876502.

Validity

References

This document refers to:

SAP Notes

This document is referenced by:

Software Component From Rel. To Rel. And Subsequent

SAP_APPL 46C 46C

470 470

500 500

600 600

602 602

603 603

604 604

605 605

606 606

616 616

SAP_FIN 617 617

700 700

2120109 OB22: Exchange rate type "M" for parallel valuation views

1442153 Transfer price valuation for material transfers

876502 KT 354 when you assign the currency and valuation profile

458543 TP: Use of user exits

122902 TP: assignmt valuation to version

122008 Activating transfer prices/multiple valuation approaches

120380 Subsequent activation of multiple valuation approaches



SAP Notes (5)

122902 TP: assignmt valuation to version

122008 Activating transfer prices/multiple valuation approaches

120380 Subsequent activation of multiple valuation approaches

458543 TP: Use of user exits

1442153 Transfer price valuation for material transfers

861965 - overview of currency settings for transfer prices

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