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

SG032 - Overview

• 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.

SG032 - Details

• 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),