What is translation ratio in SAP FI-LC - Consolidation?

SAP Term: translation ratio

• Component: FI-LC

• Component Name: Consolidation

• Description: The consistent relationship between the monetary units of two foreign currencies.

Smart SAP Assistant

• Key Concepts: 
  Translation ratio is a term used in the FI-LC Consolidation component of SAP. It is a ratio used to convert the currency of one company to the currency of another company in a consolidation process. This ratio is used to ensure that the consolidated financial statements are accurate and consistent. 
  
  How to use it: 
  The translation ratio is used to convert the currency of one company to the currency of another company in a consolidation process. The translation ratio is calculated by dividing the exchange rate of one currency by the exchange rate of another currency. This ratio is then used to convert the financial statements of one company into the currency of another company. 
  
  Tips & Tricks: 
  When calculating the translation ratio, it is important to use the most up-to-date exchange rates. This will ensure that the consolidated financial statements are accurate and consistent. Additionally, it is important to use consistent exchange rates throughout the consolidation process. 
  
  Related Information: 
  The translation ratio is an important concept in SAP's FI-LC Consolidation component. It is also related to other concepts such as exchange rate, consolidation process, and financial statements. Understanding these concepts will help you better understand how to use the translation ratio in SAP's FI-LC Consolidation component.