What is currency translation in SAP EC-CS - Consolidation?

SAP Term: currency translation

• Component: EC-CS

• Component Name: Consolidation

• Description: The translation of the local currency of financial statements of foreign consolidation units into the group currency for the reason that consolidation statements are to be created in group currency. The following choices, in particular, must be made when performing currency translation: For the translation of individual financial statement items, you must choose either the current exchange rate which corresponds to the statement date or the historical exchange rates. You must choose between alternatives for the treatment of differences that arise during translation. You must select among the array of exchange rates.

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• Key Concepts: 
  Currency translation is a process used in the EC-CS Consolidation component of SAP to convert financial statements from one currency to another. This process is necessary when consolidating financial statements from different countries, as each country may have its own currency. Currency translation is used to ensure that all financial statements are reported in the same currency. 
  
  How to use it: 
  In order to use currency translation in the EC-CS Consolidation component of SAP, you must first set up a currency translation type. This type will determine which currencies will be used for the conversion and how the conversion will be done. Once the type is set up, you can then enter the exchange rate for each currency and begin the currency translation process. 
  
  Tips & Tricks: 
  When setting up a currency translation type, it is important to make sure that all currencies are included and that the exchange rates are accurate. Additionally, it is important to keep track of any changes in exchange rates over time, as this can affect the accuracy of the currency translation process. 
  
  Related Information: 
  For more information on how to use currency translation in SAP, please refer to the official SAP documentation on EC-CS Consolidation. Additionally, there are many online resources available that provide tutorials and tips on how to use this feature in SAP.