In SRM systems, direct Currency conversion (e.g. from USD to ARS) is used for Exchange Rate. There may be a few cases where Customers are using Alternative Exchange rate type(e.g. EURX) for conversion from ‘from currency’(e.g. USD) to ‘To Currency' (e.g. ARS).
Configuration for Alternate Exchange Rate type (e.g. EURX):
Figure1: Table TCURF showing the conversion factors and field 'ABWCT' for Alternative exchange rate type.
Figure2: Alternative Exchange rate type(e.g. EURX) is maintained for conversion from
'from currency'(e.g. USD) to 'to currency' (e.g. ARS).
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Steps tohandle erroneous Total Value in Purchase Order:
In SAP SRM Procurement Scenario, purchaser/employee creates a shopping cart with free text item in ‘local currency’ (since User/purchasing organization has ‘local currency’ as default currency). A preferred supplier is added to the shopping cart which has ‘foreign currency’ as default currency. A Purchase Order is created out of this shopping cart with currency ‘foreign currency’.
During currency conversion, a rounding error occurs for certain prices(not all) resulting in erroneous Total Value(multiplied by conversion factor twice instead of once).
- Rounding issue occurs for some prices(not for all).
- Internal SAP standard uses direct conversion. When using Indirect conversion there is a huge impact in business due to error in Purchase order total value can be an unexplored area for most of the users.
- Huge Effort in Understanding the root cause for the error as when SRM application calls IPC multiple times, there may be a very slight rounding difference in values for some Price Values, resulting in huge erroneous Total Value in Purchase Order.
SRM architecture calls IPC Multiple time as per the design. For the first call to IPC from SRM, currency conversion is done as maintained in
customization by the customer i.e. from ‘local currency’ to EUR and then from EUR to ‘foreign Currency’, that creates a particular rounded value in IPC. For the second call to IPC, ‘local currency’ to ‘foreign Currency’ conversion is direct which
creates a different rounded value. Due to rounding off value difference, Function Module for conversion to foreign currency is called again causing a huge Total Value by multiplying the value again with conversion factor.
When using indirect currency conversion for certain Prices, Rounding Errors can impact the procurement process ,
by calculating:
Total Value(foreign currency) calculated wrongly in Purchase Order = Price(local currency) x Conversion Factor x Conversion Factor
Kindly note that the behavior mentioned above occurs only for European Monetary Union (EMU) Exchange Rate Type.
Solution:
This Rounding Off issue is resolved via note 2061300. Customer can download the latest IPC patch from the service marketplace
using the instructions in note 880749 and apply it.
Release Information:
SAP SRM 7.0 Enhancement pack 3.