1) For Every combination of two currencies different exchange rates can be maintained which can be distinguished using Exchange rate types:
i) Historical Rate.
ii) Bank selling rate. – B
iii) Bank buying rate. – G
IV) Average rate. – M
v) The rate on certain key dates.
2) A Currency key must be assigned to every currency used. A currency key can have a validity date.
3) The relationship between currencies must be maintained per exchange rate type and currency pair using translation ratios.
4) For maintaining exchange rates for each exchange rate types, one of the following tools can be used.
>> Base currency
>> Exchange rate spreads
5) Using report RFTBFF00/RFTBDF07 (SE38) enables to transfer external market data in multi cash file form to update automatically the exchange rate table.
6) Direct quotation : One unit of foreign currency is quoted for the local currency.
1 US$ = 46 Rs.
Indirect quotation: One unit of local currency is quoted for the foreign currency.
1 Rs. = 0.0217 $
IMG path for defining currency –
IMG>General Settings>Currencies>Check Exchange Rate Types