What is 'translation ratio' in SAP EC-CS - Consolidation?

translation ratio - Overview

• Component: EC-CS

• Component Name: Consolidation

• Description: The relationship between the monetary units of two foreign currencies to each other.

translation ratio - Details

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  Key Concepts: 
  Translation ratio is a feature of the EC-CS Consolidation component of SAP. It is used to convert the financial statements of a company from one currency to another. This is done by using a predetermined exchange rate, which is known as the translation ratio. 
  
  How to use it: 
  The translation ratio is used to convert the financial statements of a company from one currency to another. This is done by entering the exchange rate into the system, which will then be used to convert the financial statements. The exchange rate can be entered manually or it can be imported from an external source. 
  
  Tips & Tricks: 
  When entering the exchange rate manually, it is important to ensure that it is accurate and up-to-date. It is also important to ensure that the exchange rate is consistent across all currencies being converted. 
  
  Related Information: 
  The translation ratio feature of EC-CS Consolidation can also be used to convert other types of data, such as sales figures and inventory levels. Additionally, it can be used to compare financial statements between different currencies.