How To Fix SG032 - The & exchange rate is interpreted as an indirect rate

SAP Error Message - Details

• Message type: E = Error

• Message class: SG - Global Pool for Cross-Application Developments

• Message number: 032

• Message text: The & exchange rate is interpreted as an indirect rate

What causes this issue?

You have entered an exchange rate as a direct rate (1 unit of &V2&
corresponds to x units of currency &V3&).
However, the system is set to indirect quotation for the currency pair
&V2&/&V3& (x units of &V2& correspond to 1 unit of currency &V3&).
Indirect rates are preceded by a '/' character in exchange rate fields,
direct rates are not.

System Response

The system adds the '/' character for you and accepts your entry as
indirect.

How to fix this error?

If you want to enter a direct rate here, use the F4 help for the
exchange rate field.

Procedure for System Administrators

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message SG032 - The & exchange rate is interpreted as an indirect rate ?

  The SAP error message SG032, which states "The & exchange rate is interpreted as an indirect rate," typically occurs in the context of currency conversion and exchange rate settings in SAP. This error indicates that the system is interpreting the specified exchange rate as an indirect rate rather than a direct rate, which can lead to issues in financial transactions, reporting, or data processing.
  Cause:
  
  Exchange Rate Type Configuration: The exchange rate type being used may be configured as an indirect rate in the system. In SAP, exchange rates can be classified as direct or indirect, and this classification affects how the rates are applied in currency conversions.
  Currency Pair: The currency pair being used may not have a direct exchange rate defined. For example, if you are trying to convert from currency A to currency B, and the system only has an indirect rate (e.g., A to USD and USD to B), it may trigger this error.
  Missing Exchange Rates: The required exchange rates for the specific currency pair may not be maintained in the system for the relevant period.
  Transaction Settings: The transaction or document you are processing may not be set up to handle indirect rates properly.
  
  Solution:
  
  Check Exchange Rate Type: Verify the exchange rate type being used in the transaction. You can do this by navigating to the relevant configuration settings in SAP (Transaction Code: OB08) and checking the settings for the exchange rate type.
  Maintain Exchange Rates: Ensure that the necessary exchange rates for the currency pair are maintained in the system. You can do this by using Transaction Code OB08 to enter or update exchange rates.
  Use Direct Rates: If possible, use a direct exchange rate type for the transaction. This may involve changing the configuration or selecting a different exchange rate type in the transaction.
  Review Currency Settings: Check the currency settings in the document or transaction to ensure that they are correctly configured to handle the exchange rates being used.
  Consult Documentation: Refer to SAP documentation or help resources for specific guidance on handling exchange rates and resolving related errors.
  
  Related Information:
  
  Transaction Codes: 
  
  OB08: Maintain exchange rates.
  OB22: Define exchange rate types.
  
  
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide additional troubleshooting steps.
  User Roles and Authorizations: Ensure that you have the necessary authorizations to view and maintain exchange rates in the system.
  Testing: After making changes, perform tests to ensure that the error is resolved and that currency conversions are functioning as expected.
  
  If the issue persists after following these steps, it may be beneficial to consult with your SAP support team or a functional consultant who specializes in financial modules.