A method of currency translation.
This method distinguishes between the "straight current-rate method" and the "modified current-rate method":
Straight current-rate methodAll balance sheet and income statement item amounts denominated in foreign currency are translated into group currency as per the closing reporting date using the exchange rate valid on that date.
Since this a straight translation of values from one currency to another, there are no currency translation differences.
Because of the uniform translation using the current exchange rate, the structures of the balance sheets and income statements of the consolidated individual statements remain unchanged.
Modified current-rate methodThere are several forms of the modified current-rate method. The most recommended modified method is where the income statement is viewed as a time period statement and is not translated using the current rate but rather using the rate valid at the time the transaction took place or - to avoid complexity - using an average rate on a yearly, quarterly or monthly basis.
Another modified method involves the translation of equity values: Instead of translating stockholders' equity with the current exchange rate, historical exchange rates can be used.
More terms such as current-rate method in Dictionary C.
- Manual Conversion Exit:
- Help conversion from display format to SAP internal format, and vice-versa. Conversion exits are stored as function modules. In this context, the function modules CONVERSION_EXIT_XXXXX_INPUT, convert current-rate method definition.
- Manual Company Best Bid (SRM-LA):
- Help Best bid calculated per company for bid validation current-rate method explain.
- Manual COBRA:
- Help Omnibus Budget Reconciliation Act of 1985. This US law requires an employer to offer continued coverage to individuals participating in group health plans who, as a result of a qualifying event, lose current-rate method what is.
- Manual Conversion Rule (BC-SRV-COM):
- Help that converts documents to be sent externally into a format that the external communication system supports. Example: Documents to be sent from the SAP System as faxes have to be converted to a current-rate method meaning.
- Manual Compulsory Comment:
- Help entering an explanatory text. A compulsory comment can exist at different levels, for example: At characteristic level, if a characteristic is rejected At lot level, if the usage decision contradicts current-rate method abbreviation.
